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Hello,
I have a question about VAT payments.
A company charges 20% VAT to customers.
The company is on a flat VAT rate of 14.5%.
So the company only pays 14.5% to HRMC of the 20% recieved from customers? Is that correct?
Can anyone help explain how this works when inputting into the compaines books please? Would there be a seperate ledger account for the difference to be moved to so the VAT account balance would be zero?
Thanks in advance
Sam
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