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Mar 24, 2022 12:14 PM UTC
Question

I am on the FRS and the VAT return is not showing the correct amount when adding RC SG

I am having Two problems. 1. I am on the FRS. When i enter an expense (RC SG) it adds 0 to box 1 but adds the amount to box 4. Therefore reducing my total VAT due. This seems incorrect as it should cancel each other out? If i go on the expense specifically it states Memo Subtotal £38.88 VAT @ 20% on 38.88 7.78 VAT @ -20% on 38.88 -7.78 Total £38.88 This seems to be right on the expense line but not on the VAT return? 2. Box 7 (Net value of purchases) is showing 0. This is despite there being many expenses and purchases. Is this correct?

1 reply

Mar 24, 2022 3:00 PM UTC

Hello Veddhaframes-out, 

 

Welcome to the Community page, 

 

So RC codes are outside of FRS, as such the codes do not work correctly in Quickbooks Online when FRS is turned on. You should use the adjustment option to adjust the boxes by the required amounts in the vat return section.