Flat rate VAT question

doing a learning check on my course. I can't get the answer right.

Question is:

company uses flat rate. rate is 13%.
turnover is £14867.50. goods are standard rated for VAT.

how much do they pay to HMRC for the period?

I keep getting 1909.37
but it keeps telling me the answer is £2291.25

can anyone explain this to me please??

thanks in advance

Comments

  • Anisa97
    Anisa97 Registered Posts: 42 Regular contributor ⭐
    Flat rate is applied to the turnover INCLUDING VAT so £14687.50*120%=£17625
    £17625*13%= £2291.25

    Hope that helps
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