Hi,
What's the best way to enter up the 5% element of the sales invoice on to VT Transaction+ ?
More than 50% of my client's revenue for his VAT quarter qualifies for 5% output VAT - when he comes to do his VAT return, will the HMRC control prevent him from submitting the return if the total Output VAT isn't 20% of Income?
Many thanks
Andy
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Replies (3)
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Go to Set up, Invoices, New Product service and set up the services provided with the reduced VAT rate and then choose this service when you raise the invoice.
No the VAT does not need to be 20% of the Sales to submit the return given there could be reduced rate or zero rated taxable supplies, but I think a warning comes up if it is more than 20%.
We've had zero rating for 45 years.
HMRC will be used to a few returns showing VAT of less than 20% of sales by now.