Accountz and VAT FRS

Accountz and VAT FRS

Didn't find your answer?

Reviewing my clients accounts I noticed that the software calculates FRS wrongly. It treats the gross sales as being inclusive of the FRS percentage instead of applying the FRS percentage to the gross sales. In the VAT Return sales are therefore understated and so is VAT.
Anyone else noticed this?

Replies (10)

Please login or register to join the discussion.

The triggle is a distant cousin of the squonk (pictured)
By Triggle
24th Mar 2013 19:24

Hi Andy

Don't know what software they are using but the VAT paid under the FRS should be gross value of invoices in VAT period x flat rate percentage.

The quick check would be:

VAT = net turnover divided by 100 x 120 x flat rate percentage

presuming all sales at standard rate and constant flat rate percentage throughout the period.

If they are using the "cash based method" then the turnover would have to be adjusted for net debtors brought forward and net debtors carried forward.

Edit: I now see they are using Accountz - never used it I'm afraid.

 

 

Thanks (0)
avatar
By andy.partridge
25th Mar 2013 09:31

I know about FRS, I am flagging up a fault in  Accountz software.

Thanks (0)
The triggle is a distant cousin of the squonk (pictured)
By Triggle
25th Mar 2013 10:37

Sorry Andy - I only realised it was a specific question about Accountz software after I'd posted.

I left my comment up there should anyone else need that info but at least by responding again I've bumped the thread in front of others who may have had the same problem as you have!

Seems a bit of a serious fail for Accountz if this is true.

 

Thanks (0)
avatar
By User deleted
25th Mar 2013 10:45

I don't quite follow the problem

What do you mean by gross sales, Andy? Surely gross sales are inclusive of VAT, and therefore nothing further should be added.

Did you mean to say net sales? But then, what needs to be added is the actual VAT charged, not the FRS VAT.

Perhaps a numerical example will show me where my misunderstanding is.

Thanks (0)
avatar
By andy.partridge
25th Mar 2013 11:19

Flat rate scheme

I am talking about the flat rate scheme.

OK an example:

Sales invoice £1,000 net, VAT £200. Gross £1,200. Flat rate percentage 12%, FRS VAT is £144

Accountz calculates FRS VAT as £1200 x 100/112 x 12% = £128.57

Thanks (0)
By Roxanne Wralls
25th Mar 2013 11:39

Maybe...

... it's time to recheck the Regulations! I rather like this new calculation!

Thanks (0)
avatar
By User deleted
25th Mar 2013 12:03

Thanks, Andy

All clear now - it was the "adding it" bit that threw me.

Thanks (0)
avatar
By andy.partridge
25th Mar 2013 12:25

Amended

I've amended the wording of the question to make it clearer.

Thanks (0)
avatar
By andy.partridge
25th Mar 2013 17:47

Let me broaden this

Anyone out there use Accountz?

Anyone have clients who use Accountz?

Anyone care if their clients use Accountz or not?

Anyone think I should snitch on Accountz to HMRC?

Thanks (0)
Replying to lionofludesch:
avatar
By Helen Linley
26th Mar 2013 09:56

Accountz.com

Hello Andy,

I am the CEO of Accountz,com Ltd and have checked your clients transactions.  It seems that you client has not been using our software correctly and has manually created his/her own VAT code for the Flat Rate Scheme. To do this he/she would have to had to confirm that they wanted to Unlock the VAT Configuration Editor and agreed to the following message:

"Confirm Unlock Tax Configuration Editor"

"WARNING- this is a non reversible action"

By clicking 'OK' , you are confirming that you will be responsible for settting the correct Tax rates for your country and any other countries you  trade with.

"Are you sure you want to unlock the Tax configuration?"

"YES/NO"

I can assure you that our Business Accountz products handle the Flat Rate Scheme correctly.  Your client should have entered all transactions with the Flat Rate VAT code then at quarter end used our Eazy step 'Complete Flat Rate Return' this would have asked him/her their percentage rate and calculated the correct amounts.

Please feel free to Accountz on 01354 691650 if you need any further information.

Regards

Helen Linley

 

 

 

 

 

Thanks (0)