What you'll need
- Your VAT number
- The months your VAT quarters end
- Your VAT scheme, and your flat rate if you use the Flat Rate Scheme
Before you start
Only turn VAT on if your business is VAT registered. Not registered, invoices and quotes have no VAT on them. Ask your accountant if you're not sure which scheme you use.
- Open Settings, Business details, and find VAT.
- Turn on VAT registered. Enter your VAT number (9 digits, with or without GB) and the date you registered from.
- Choose the months Your VAT quarters end in, and your Scheme: Standard, Cash accounting or Flat Rate Scheme. For the Flat Rate Scheme, enter your flat rate.
- Choose Save VAT settings.
What happens next
New invoices and quotes show VAT on top of your prices. Invoices already issued don't change.
The VAT rate is in Settings, Invoicing, and is 20% unless the owner changes it. Prices are before VAT; VAT is added on invoices.
Your VAT return figures
Money, then VAT return. Choose a VAT quarter to see the nine boxes, each with the records behind it, and the records in the quarter that aren't in a box. Choose Download CSV to give to your accountant or bridging software. Filing a VAT return with HMRC from harulu is coming soon. A voided invoice counts as cancelled in the quarter it was voided.
Expenses can carry VAT too: when you add one, enter the VAT included and tick The VAT can be reclaimed.
If something goes wrong
- “A VAT number is 9 digits, with or without GB.”: check the number.
- “Your business isn't set up as VAT registered.”: turn it on in Settings, Business details.
- “Set the business's flat rate percentage in its VAT settings.”: enter Your flat rate.
Who can do this
Turning VAT on: the owner only. The VAT return: the owner, and managers with Money and money reports.
Still stuck? Send us a message.