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Paula Jane
July 8, 2021
Solved

Flat rate scheme incorrect

  • July 8, 2021
  • 1 reply
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I am on the flat rate scheme and having continual issues with Quickbooks calculating my VAT due on the net amount whereas it should be the gross amount. I have had emails saying that this has been fixed but it has not. I spent a frustrating session of over an hour on the chat with an agent who rather rudely insisted that I did not understand the flat rate scheme. Any ideas?

Best answer by MadelynC

I want to ensure this VAT calculation will get resolved, Paula Jane.


I hear your sentiments, and I know how important to get these figures to be correct. QuickBooks Online (QBO) calculates VAT based on the tax rate associated with a transaction.


You can review your transactions to ensure all information are correct. If your records are set up appropriately, you may consider contacting our Technical Support once more. They can investigate the issue further. And if need be, they can escalate it for you.


Here’s a reference that gives you insights about Flat Rate Scheme (FRS) in QBO: FRS explained.


Don't hold back to drop a comment if you have other questions or concerns besides VAT calculation. The Community is always here to help. Take care!

1 reply

MJoy_D
MJoy_D
July 8, 2021

I can share some information with the VAT Flat Rate Scheme, @Paula Jane.

 

I suggest reaching out to an accountant or tax adviser in verifying if your VAT is due on the net amount or the gross amount. After that, I suggest reaching back to our Customer Support to get into details and explain it further to you.

 

You can reach our Customer Support for QuickBooks Online (QBO) by going to the Help icon at the top right of the account. Follow the steps below: 

  1. Go to the Help icon to connect to a live support agent. 
  2. Click on the Contact Us button and provide some details about this concern.
  3. Provide us with some information about your concern in the What can we help you with? box and click on Continue.
  4. You'll now be provided options on how to connect to our Customer Support.

 

Check the following article to know about the different types of support we offer and their availability: QuickBooks Online Support.

 

Here's an article that tells you more about submitting VAT returns using the Flat Rate Scheme (FRS) method: Flat Rate Scheme (FRS) in QuickBooks Online. 

 

If you have other questions about your transactions, I'm happy to answer them for you. Just post it here as a reply and I'll take a look at it. Have a good one!

P
Paula JaneAuthor
July 8, 2021

I have already spoke to a live support agent. They were of no help.

 

I do not need help with using the flat rate scheme. The flat rate scheme calculates VAT on the gross figure not the net. I already have an accountant and we have used the scheme for 15 years.

 

This is taken from the HMRC website:

 

'Example You bill a customer for £1,000, adding VAT at 20% to make £1,200 in total.

The VAT flat rate for your business is 11%.

Your flat rate payment will be 11% of £1,200, or £132.'

 

The fault is with Quickbooks which is calculating the VAT on the net figure not the gross figure. As you can see from the above, this is incorrect.

 

Please advise as to what you will do to address this.

 

 

M
MadelynCAnswer
July 9, 2021

I want to ensure this VAT calculation will get resolved, Paula Jane.


I hear your sentiments, and I know how important to get these figures to be correct. QuickBooks Online (QBO) calculates VAT based on the tax rate associated with a transaction.


You can review your transactions to ensure all information are correct. If your records are set up appropriately, you may consider contacting our Technical Support once more. They can investigate the issue further. And if need be, they can escalate it for you.


Here’s a reference that gives you insights about Flat Rate Scheme (FRS) in QBO: FRS explained.


Don't hold back to drop a comment if you have other questions or concerns besides VAT calculation. The Community is always here to help. Take care!

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