Flat rate VAT
Poodle
Registered Posts: 695 Epic contributor 🐘
Hi,
If you raise a credit/debit to the flat rate adjustment general ledger account at the end of a VAT quarter, is this credit outside of the scope for VAT?
I don't think that it is but you know how it is when you start to think about something and the debit/credit balance at the end of a tax period is included in a CT/IT computation.
Poodle
If you raise a credit/debit to the flat rate adjustment general ledger account at the end of a VAT quarter, is this credit outside of the scope for VAT?
I don't think that it is but you know how it is when you start to think about something and the debit/credit balance at the end of a tax period is included in a CT/IT computation.
Poodle
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Comments
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Hi Poodle
I am not sure that I understand your question -
Do you mean what happens to the +/- on the VAT account at the end of quarter?
If so then it gets posted a nominal code as a debit/credit in the profit/loss account.
In effect if you "make a profit" out of the flat rate scheme then yes you would pay income/corporation tax on the extra profit.
If I have misunderstood your question, post on here again and I will try and help!
Claudia0
