Flat rate VAT scheme set up query

Question asked by Abigail Bryant 8 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!

Write reply1

1 Reply

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.

Best answer
8 years ago

Reply to this question

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