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September 11, 2021
Question

VAT Flat Rate Savings Entry ??

  • September 11, 2021
  • 1 reply
  • 0 views

Hello

 

I am on the flat rate vat scheme with a rate of 6.5%.

 

As quickbooks does not show in your profit and loss the income made from the diffrence of 20% charged and 6.5% given to Hmrc and just shows income minus 20% vat i am getting slighty confused on the following.

 

Currently to work out my income tax i take my total income add the 20% vat paid then minus my flat rate at 6.5% and then obviously minus all my expenses but what i find confusing is when you submit your quaterly vat through quickbooks which calculates the flat rate correctly but then add a journal entry that is labeled savings from flat rate and its classsed as an income but its a odd number not corosponding to what i make or earn from the Flat rate.

 

So at present i am having to ignore that income entry and do the above calculations to get the correct amount for self assement purposes.

 

Any advise if this is correct and or the purposes of the savings by frs entry when submitting which at the moment is throwing my income number off and making it very confusing.

 

Regards 

1 reply

Rose-A
September 11, 2021

Hi, disk3473 .

 

As long as your Flat Rates are correct, you can ignore the journal entry that was labeled to your savings.

 

However, if you need more guidance about how you can manage this entry without affecting your quarterly vat, I'd suggest working with an Accountant. They'd be able to answer any flat rate or vat-related questions as well as dealing journal entries.

 

In the meantime, you might want to visit the following resources below. This will provide you tips about how flat rate works in QuickBooks Online as well as steps to make VAT adjustments:

 

Make VAT adjustments in QuickBooks Online.

QuickBooks Online Flat Rate Scheme explained.

 

I always got you're back if you have any other QuickBooks concerns. Have a wonderful day!