VAT flat rate for self assessment

Vanessa_Essential Registered Posts: 12 New contributor 🐸

I'm anxious for some help and the accountant I use has not come back to me on this. I'm a bookkeeper and have a client on the flat rate, so I do the VAT returns and the accountant does the SA. Here is the email I sent to her earlier; my problem is I am worried that the Income has been wrongly calculated by myself........

Let’s take the quarter for Sep/Oct/Nov 16 – gross was £23642.

12% of that was £2837.04 so that’s what was paid to HMRC.

My journal adjusting this was DR Income, CR Creditors (flat rate due) £2837.04.

Now I’m wondering about the 20% from the £23642 (£3940.33) = 19702 net sales. Should I have adjusted for this for when you did the P&L? Did it need it, and would you have changed it yourself?

I’m really worried about it!


  • davealucas
    davealucas Registered Posts: 140 Dedicated contributor 🦉
    My understanding of the flat rate scheme is that you only account for the flat rate element on your sales, as you cannot reclaim VAT on your purchases.

    The correct treatment, based on your gross amount of £23,642 is that you should place £20,804.96 into your sales revenue and £2,837.04 into your VAT control account. Your adjusting journal appears to have done that and no further adjustments are necessary.
  • Vanessa_Essential
    Vanessa_Essential Registered Posts: 12 New contributor 🐸
    Thank you for taking the time to read and reply, and I am pleased with your response..much appreciated.
  • burg
    burg Registered, Moderator Posts: 1,441 mod
    Your way of dealing with it was fine.

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