Flat rate VAT scheme set up query

Question asked by Abigail Bryant 9 years ago

Hello

I will shortly be switching tot he flat rate VAT scheme having not been registered for VAT before. On the Details & tax tab where I input the scheme type and start date etc it asks me to input the VAT rate. Do I put in the VAT rate that my business will pay to HMRC? (which is 11% in the first year and 12% thereafter) or do I put in 20% as that's what needs to be on my invoices, or does it automatically do that anyway? I'm sure the answer must be use the 11% value but I just wanted to check before I screw anything up!

Thanks!

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Hi Abigail,

It's the VAT rate that your business pays to HMRC, so 11%. When you create invoices you will still be able to select 20%, the system just calculates the VAT as 11% of the gross in the double entry.

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9 years ago

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