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kitjohnson
August 1, 2024
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Leaving the VAT Flat Rate Scheme (FRS) - correct procedure

  • August 1, 2024
  • 1 reply
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Our company is leaving the VAT flat rate scheme (FRS). Our last day on the scheme was yesterday, 31st July. This was the last day of the VAT quarter for us. Today is 1st August, the first day of our next VAT quarter, and we are starting on the standard scheme today.

 

We've already informed HMRC that we'll be using the standard scheme from today. I want to know the clearest way to do this in Quickbooks.

 

  1. Should I edit the VAT settings today, or should I wait until we have completed our VAT return for the last quarter (ending 31st July)?
  2. I know I need to go to VAT settings, and uncheck the FRS scheme. But I'm not sure about the 'effective date for new scheme' field. This currently shows a date from last year. Do I need to manually set this to be 1st August of this year?
Best answer by Kurt_M

We appreciate you reaching out here in the Community space, Kit. We'll share information about the procedure and help leave the VAT Flat Rate Scheme (FRS) inside QuickBooks Online (QBO).

 

Yes. You'll need to wait until you complete the VAT return for the last quarter before modifying your VAT settings inside the company file. You need to wait for confirmation from the HMRC regarding the date of your departure from the scheme before you can uncheck the FRS box. They're also the ones who can provide the new scheme's effective date.

 

Once done, these are the steps to help you add the standard scheme to your setup:

 

  1. Access your QuickBooks Online company.
  2. On the left navigational bar, click the Taxes tab.
  3. Select Edit settings and then uncheck the FRS box.
  4. Choose Standard as the new VAT accounting method.

 

For more details, please see this article: Understanding the Flat Rate VAT Scheme in QuickBooks Online.

 

To help you handle VAT payments inside the program and to keep track of how what you owe, we're providing these articles:

 

 

It's been a pleasure to have you here today. We encourage you to visit us or comment below if you need assistance managing VAT settings inside the program. Our team will always be around to lend a helping hand. Keep safe.

1 reply

K
Kurt_MAnswer
August 1, 2024

We appreciate you reaching out here in the Community space, Kit. We'll share information about the procedure and help leave the VAT Flat Rate Scheme (FRS) inside QuickBooks Online (QBO).

 

Yes. You'll need to wait until you complete the VAT return for the last quarter before modifying your VAT settings inside the company file. You need to wait for confirmation from the HMRC regarding the date of your departure from the scheme before you can uncheck the FRS box. They're also the ones who can provide the new scheme's effective date.

 

Once done, these are the steps to help you add the standard scheme to your setup:

 

  1. Access your QuickBooks Online company.
  2. On the left navigational bar, click the Taxes tab.
  3. Select Edit settings and then uncheck the FRS box.
  4. Choose Standard as the new VAT accounting method.

 

For more details, please see this article: Understanding the Flat Rate VAT Scheme in QuickBooks Online.

 

To help you handle VAT payments inside the program and to keep track of how what you owe, we're providing these articles:

 

 

It's been a pleasure to have you here today. We encourage you to visit us or comment below if you need assistance managing VAT settings inside the program. Our team will always be around to lend a helping hand. Keep safe.

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