Forum

• # 83707
• Tue 03 Jul 2012 09:39 PM

Hi all,

My client is on flat vat scheme. Have any of you had anything to do with this scheme?   Let me tell you something, this scheme is confusing the hell out of me.
It  is ment to simplify things according to HMRC, however I had nothing but problems. 
We have had a few disputes with my client on on how the vat return has been done in the past and how it should be done. Even HMRC staff is confused and confusing so is Sage support staff. 2 out of 3 HMRC helpline officers asked the same question gave me wrong answers. Anyway this issue has been resolved.
My new query is: do I post purchases, expenses/receipts etc to Sage net of vat or including vat? What vat code should I use?
 The thing is I have posted it already but something is buggig me that it may not be right. 

Please help
Anna  
 

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• # 83708
• Tue 03 Jul 2012 09:49 PM

Post both sales and purchases to Sage in exactly the same way as you would do if the client was on standard rate VAT. When SAGE creates the return, it will take into account only the sales (i.e. net sales plus 20%), and calculate the applicable flat rate (e.g. 13%) on those.

Then when you’ve made the return, click the “VAT Transfer” tab. SAGE will then transfer the difference into a Flat Rate Benefit/Cost nominal account (which is a very good assist to your client in assessing whether they’re actually benefitting from using the flat rate or not – it doesn’t always work out well for them)

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• # 83820
• Sun 08 Jul 2012 07:59 PM

Thanks a lot for your advise. Did a sample test and it all works. Brilliant.

Anna

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