How to: MTD on the Flat Rate Scheme
Clear Books is HMRC recognised MTD software that works perfectly for Flat Rate Scheme (FRS) returns. Here’s how to set up and submit FRS VAT returns in Clear Books;
Set up a FRS account
Simply select ‘Flat rate scheme’ as your VAT scheme, and supply the VAT rate. If you don’t know what the VAT rate is, visit the .Gov website here.
Create sales invoices with the appropriate amount of VAT
Clear Books will calculate the tax you pay by multiplying your VAT flat rate by your ‘VAT inclusive turnover’. Using the 10% rate as an example, the double entry of the invoice will look like this:
Enter bills as normal
Clear Books will ensure that VAT is only calculated on bills which are both > £2K and have a fixed asset account code:
Create your VAT return by selecting VAT return from the Tax menu
Clear Books will apply all the FRS rules to the VAT return, allow you to review the 9 boxes, and submit the return directly to HMRC.
Clear Books MTD VAT return software is available on a free trial for 30 days. Start one now by visiting https://www.clearbooks.co.uk/accountants/