Flat rate VAT

Poodle Registered Posts: 711 Epic contributor 🐘

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.



  • claudialowe
    claudialowe Registered Posts: 275 Dedicated contributor 🦉
    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!

Privacy Policy