I've never dealt with the VAT flat rate scheme before.
With income of £1000+ 20% VAT = £1200 and flat rate of, say, 12%, the VAT to be reported in Box1 is 12/112 x 1200 =£128.57- and the income in Box 6 is £1200-£128.57 = £1071.43.
Is that right or have I misunderstood? It goes against the grain to report numbers that don't come directly from the accounting records.
Presumably the 'windfall' gain on output tax is then part of the taxable profits of the business?