Flat-rate VAT scheme form: filling in the online return
This is a step-by-step guide to filling out the online flat-rate VAT form. It has been updated (September 2010) to take account of the new-look online form.
The flat rate VAT scheme is brilliant. Multiply your VATable income by the flat-rate amount. And that's it. You may even turn a small profit ...
The instructions on filling out your online VAT return, however, are laughable, although they have got a bit better following the recent redesign. Oh my god, they've redesigned it AGAIN and removed the flat rate vat instructions!! Here's the new form:
How to fill out your online VAT return if you're in the flat-rate scheme
Here's what you need to do written in a less complicated way than HMRC manage it.
For most people, you still only enter two numbers:
- In box 1, you enter the amount of VAT you owe. So that's your income, including VAT, mutiplied by your FRVS rate. So if you had income of £12,000 INCLUDING VAT, and your FRVS rate was 10%, you would enter £1,200 here.
- In box 6, you enter your income INCLUDING VAT. So that's £12,000 in this example. I know it says excluding VAT but this is WRONG. So enter the amount INCLUDING VAT. I'm not kidding - the form is wrong - it's aimed at normal VAT people. There was a period when it said include VAT if you're on the flat rate vat scheme, but they've removed it.
In the other boxes, I enter a zero.
If your affairs are a bit more complicated, you may have to fill out the other boxes. This is explained here. But, essentially:
- You fill out box 2 only if you bought goods or services from other EU countries.
- Box 3 is calculated for you.
- Box 4 is usually 0 as you can't reclaim VAT you've paid under the FRVS. There are exceptions for capital expenditure over £2,000, VAT you've paid at initial registration, and reverse-charge purchases from abroad. For most people, none of this applies.
- Box 5 is calculated for you.
- Box 7 is usually 0, unless you've bought goods from another EU country or made a £2,000+ capital purchase.
- Box 8 and box 9 are applicable only if you've traded with other EU countries.
That's it, though. For most people, fill out box 1 and 6, and remember to enter your income INCLUDING VAT.