Flat Rate VAT Scheme and Cash Accounting Scheme Combined

The way the flat rate scheme works is that you add up the total amount received for the VAT period (from Sales) and apply your flat rate to that. Business Accountz can calculate this amount for you by using the Easy Step “Complete Flat Rate Return”.

You should check that you have told Business Accountz that you are on the Cash Accounting Scheme. To check this please go to VAT Return and then click on the Report Options icon and check that you have selected Cash Accounting.

On Cash Accounting it is very important that when you mark an item paid that you check if you are back dating information that you correctly enter either the Paid Date or VAT date as this will affect when the transaction will be entered onto a VAT return.

The VAT code for all sales and purchases (unless they are capital items please see HMRC’s website) will be Flat Rate Scheme. This will enter a zero amount in the VAT amount.

At the end of your VAT period once you have reconciled your bank account to make sure that you have not missed any transactions you are ready to run the Complete Flat Rate Return Easy Step.

1     Please click on the Easy Steps icon

2     Select the VAT tab

3     Select the Complete Flat Rate Return

4     Select the correct VAT period/quarter. Next

5     Enter your flat rate percentage. Next

6     Select whether you are going to pay the amount now. Next

7     Business Accountz will now have calculated the correct amount of VAT that you are due on paid sales.

8     Please finish and complete the wizard

The above wizard will have created sales transactions reducing you sales and creating your VAT sales transactions which can be viewed in the Sales Transactions

You will still need to submit these figures to HMRC either directly through the software or by logging onto HMRC’s website.

You can build the below filter if you wish to check the paid sales in a VAT period.

In Sales Transactions click on the New View icon

1     Name the view Cash VAT check

2     Select Add Condition and select VAT Date

3     On the line that has been created please change Equal to Occurs Between (scroll down)

4     And then enter the VAT quarter’s dates that you are filtering

5     Select Add Condition again and select Paid

6     And the condition Equals tick paid

This will now show you below your vatable sales over the period specified please check that this is correct.