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VAT calculation rounds in VAT man's favour
Hi,
I receive net amount POs, and then they calculate the VAT - it's often a penny less than freeagent (and MS Money) calculate, probably due to rounding. Often the amount paid is a penny less as well... which means a penny has to be written off(!).
In MS Money I can alter the VAT according to what I receive, but in freeagent it won't. The amount is less than the cost of sending this question, but I dislike paying the VAT man more than I receive...
I assume the rounding is a valid way of calculating VAT, can freeagent do it the same way?
Thanks
I receive net amount POs, and then they calculate the VAT - it's often a penny less than freeagent (and MS Money) calculate, probably due to rounding. Often the amount paid is a penny less as well... which means a penny has to be written off(!).
In MS Money I can alter the VAT according to what I receive, but in freeagent it won't. The amount is less than the cost of sending this question, but I dislike paying the VAT man more than I receive...
I assume the rounding is a valid way of calculating VAT, can freeagent do it the same way?
Thanks
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Inappropriate?bb,
We'll look into that rounding issue - it may be that we need to change our rounding code to more closely match what your POs are showing.
This is something that's come up before so we'll bring it up the priority list somewhat.
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Inappropriate?I've see something similar... for one of my contracts the agency generates invoices on my behalf and they're often a penny out. It looks like they must calculate and round the VAT on each invoiced item and _then_ total those amounts (rather than just calculate VAT once on the net total).
I just checked on the HMRC website and it looks like this is a valid way of doing things.
I agree it would be useful to be able to manually edit the VAT amount on an invoice in Freeagent, rather than have stray pennies floating around :)
I’m hopeful this will be an option soon
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Inappropriate?Daniel,
We should probably offer the choice between both methods as Invoice 'Advanced Options' - I can see how these stray pennies would be quite annoying.
One for the list, then...
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Hello Ed,
I experienced this when I was adding my data to the system yesterday - I've been signed up for a few weeks now. My accountant has an online system which accepts the rounded down VAT and the fact that I had to include a manual adjustment of 0.01 on the invoice to account for your system's VAT calculation is a tad discouraging.
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