VAT Return

Problem reported by Steve Mursell 11 years ago

vat Return Ticket Status: Awaiting response

I am in the process of compiling a VAT return based on a flat rate cash accounting scheme (12%) The return that is being brought up however includes a number of invoices with a FRS of 20%. Can you please advise of how I rectify this. Thank you

(Sent from /secure.clearbooks.co.uk/accounting/tax/vat-return/) 14:55 on Oct 21, 2014 3 Replies Shahriyar Faruk Shahriyar Faruk Hi Steve,

Thanks for contacting Clear Books support.

I believe what's happened is you created these invoices initially while you were on the standard VAT scheme and then post creation of these invoices you switched to the FRS (12%).

To fix this issue, you just need to head to the invoices showing up with 20% VAT rate, click the invoice number link for the invoice then click the edit button and then the save button. This should then render them under the updated VAT scheme on the Vat return.

Sorry for the inconvenience this may cause. I hope that this has been helpful. If you need any further assistance feel free to get in touch.

All the best,

Shahriyar Faruk Customer Support Analyst +44 (0)20 3475 4744

Thanks for the above instructions. I have done as instructed but only see an update rather than a save button. Pressing this does not change the invoices tax treatment on the VAT return. Please advise. Thanks

Solved
Write reply5

5 Replies

deleted invoices and re -inputted as suggested. The invoices are still showing as FRS 20%

11 years ago

In that case 20% is correct. The FRS will only cover invoices issued from 1/7 onwards.

11 years ago

FRS commences 1st July Invoices are dated prior to this date. I am on cash accounting.

11 years ago

What date does your FRS commence? And when are the invoices dated?

11 years ago

I just jumped into the demo and created an invoice on 1/11/14 for £1000 + VAT on the standard cash accounting VAT scheme. I then paid the invoice the same day, ran a VAT return and as you'd expect it said £200 VAT was payable to HMRC - no qualms there.

I then went to Settings > Details > Tax > Manage VAT Schemes and changed the scheme to 12% FRS as of 1/11/14. I then re-ran the VAT return and this time the correct amount of £144 needed paying to HMRC. This isn't happening for you? Or were the invoices in question created before FRS kicked in?

However, a point for the developers: by doing the above, £200 ends up in VAT cash control, not £144. Therefore, once the VAT return is finalised, the VAT cash control will have an excess balance of £56 that needs to be manually taken care of - something most will struggle with.

@Steve - if you've got invoices post FRS date that were created before you actually switched the system to FRS, you'll probably be best to delete them off and quickly re-input them in my opinion.

11 years ago

Reply to this problem

Attach images by dragging and dropping or upload
 

Your comments will be public and can be answered by anyone in the Clear Books community.

Find out what we do and who we are

Apps

Company

Social