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Hi all, my 1st entry....
With Flat Rate VAT, what are the correct manual entries?
At present, the VAT charges on sale entries are made to the credit side of the VAT ledger.
At the end of the VAT period, the VAT ledger is balanced.
If we say the balance is £500, std VAT Rate is 20%, flat rate is 5%.
Therefore, the amount payable to HMRC for the period end is £125 and is entered on the debit side of the VAT ledger when payment is made.
My question is, there is a balance of £375 in the ledger. I would assume that this needs to be transferred to another ledger, but where?
Appreciate any advice
Thanks & regards
Dave
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