Working as an IT Contractor? Having trouble working out how to fill in the seemingly easy flat rate VAT scheme form? Me too. Had to ask accountant a few times how to do it, so decided to write a blog post about it!
Filing VAT Return on Flat Rate Scheme
Go to HMRC login page.
Under the heading:
Click on Access service
Click “Submit A Return”
If you’re on the flat rate scheme, box 6 should contain the GROSS amount of all payments received by your company, even though it states “excluding any VAT”.
As you pass on a flat percentage of the gross amount of your invoices (including VAT) it is the gross amount that HMRC are interested in. So even though box states ‘excluding VAT,’ you put the gross amount in if you are on the flat rate scheme.
So, in box 6 put gross value of all payments made to company. In this case we’ll use 28,620.
To work out flat rate VAT due, do the following:
28620 x 0.145 = 4149.90
Enter this amount in Boxes 1,3 and 5.
Enter 0 in boxes 2,4 and 7.
Not sure of your VAT rate percentage? Check here:
So box 6 is 28620 and box 1 is 4149.90