Forum Message

Expenses

I run flat rate VAT and on a cash accounting basis. I recorded my expenses inclusive of VAT and have realised that Solar is reporting the VAT in the gain or loss income account and the net expense to the appropriate nominal account.

Is there a way around this so that gross expense goes to the nominal, other than by me coding the expense as zero VAT?


Posted by Kit Vaughan on Dec 13, 2014 9:40 AM GMT

Hi Kit,

Sorry no, if you are under the Flat Rate Scheme and want to show the gross cost (ie. including VAT) in your expense account then you will need to set the VAT rate to 0%. Note that this will make it more difficult to calculate your gain or loss due to the flat rate scheme.

Regards,


Posted by Mark McLaren (Solar Accounts) on Dec 13, 2014 10:38 AM GMT