Hello there, @laura34,
When using the Flat Rate Scheme (FRS) in the program, you pay VAT as a fixed percentage of your VAT inclusive turnover. The actual percentage depends on your client's business type.
I'd suggest contacting HMRC directly to help ensure which VAT code your client should be using. For more details about this, you can visit the HMRC website.
Once verified from the government agency, here are some VAT codes you can use in the program:
- 20.0% S (Standard rate VAT)
- 5.0% R (Reduced rate VAT)
- 0.00% Z (Zero rate VAT)
- 20.0% RC SG (Default reverse charge VAT code for services)
For more information on where these codes post, you can go through this article: UK VAT Codes for FRS.
After that, you can add the VAT code in the system. Here are the steps:
- Go to Taxes from the left menu.
- Select VAT.
- Choose Add Tax at the upper right.
- Select the type of tax, and follow the on-screen instructions to complete the form.
- Click Save.
For detailed steps about setting up, editing VAT settings, codes, and rates, you can check out this article: VAT Centre. To learn more about how FRS works in the program, see this helpful article: UK Flat Rate Scheme.
In case you want to get a report that displays transactions on the VAT return's boxes, I'd suggest running the VAT Detail report.
I'm just a comment away if there's anything else you need. Have a great day.
