If you're already VAT registered you can enter your VAT settings into Pandle during the account set-up process. These can be updated at any time (for example, if you register for VAT at a later date).

Click the 'Settings' icon in your Pandle navigation, and select 'Company Settings'.

Select the 'Financial Info' tab.

Click the box next to 'Is the business VAT Registered?' so that a tick mark appears.

Scroll down and enter:

  • Your VAT registration number. You only need to enter the numerical values, and not the prefix (which will be either GB, or XI if your business is in Northern Ireland). If you do include the prefix, Pandle will automatically remove it for you to prevent any potential errors.

  • VAT Registration Date

  • How often you must make VAT submissions. This is normally quarterly, though some VAT accounting schemes have other requirements. For instance, businesses registered on the VAT Annual Accounting Scheme can make submissions annually.

  • Click the check box if your business bought from or sold to EU VAT registered businesses before 1 January 2021. Leave the box blank if this does not apply to you.

  • Click the check box if your business uses the Reverse Charge. Leave the box blank if this does not apply to you.

Click the 'Vat Schemes' button.

The 'VAT Schemes' window will list any VAT schemes already entered into Pandle. Click the 'Add VAT Scheme' button to enter a new scheme.

Enter a start date for your new VAT scheme.

Under 'VAT Scheme' use the dropdown menu to select a type of VAT scheme. You will only need to enter a percentage rate under the 'Rate' column if you select a Flat Rate Scheme method of accounting.

Invoice Based

This is the most common scheme and is standard when registering for VAT.

Pandle will calculate the VAT on your sales, and subtract the VAT on your purchases and expenses to give you the amount due to (or from) HMRC.

Cash Accounting

This is similar to Invoice Based VAT, but the VAT becomes due when payments are made rather than when invoices are entered.

You can switch between Invoice Based and Cash Accounting VAT without informing HMRC.

Flat Rate - Invoice Based

You only need to enter a percentage rate if you are on the Flat Rate Scheme; please enter the full percentage of your flat rate.

Pandle will automatically calculate the 1% discount you are entitled to for the first 12 months from VAT registration.

The Flat Rate Scheme is a method of VAT accounting which aims to simplify VAT.

Rather than offsetting sales VAT against the VAT on purchases, you'll pay a flat percentage to HMRC.

You must apply to HMRC to join the Flat Rate Scheme, and should do this before updating your settings in Pandle.

Like the Invoice Based system, the VAT becomes due at the point you invoice your customers, instead of the point you get paid.

Flat Rate - Cash Accounting

You only need to enter a percentage rate if you are on the Flat Rate Scheme; please enter the full percentage of your flat rate.

Pandle will automatically calculate the 1% discount you are entitled to for the first 12 months from VAT registration.

The Flat Rate Scheme is a method of VAT accounting which aims to simplify VAT.

Rather than offsetting sales VAT against the VAT on purchases, you'll pay a flat percentage to HMRC.

You must apply to HMRC to join the Flat Rate Scheme, and should do this before updating your settings in Pandle.

This is similar to Invoice Based VAT, but the VAT becomes due when payments are made rather than when invoices are entered.

Learn more about the Flat Rate Scheme in Pandle.

Changing your VAT scheme in Pandle

If you move to a new VAT scheme, use the process above to add a new VAT scheme in Pandle. The start date of the new scheme will be the date which you made the switch (usually the start of a new VAT quarter).

An important note for the VAT Flat Rate Scheme

Businesses using the Flat Rate Scheme get a 1% discount during their first year of being VAT-registered.

Pandle will use the VAT registration date you enter into Pandle to calculate this for you, and will apply it automatically where eligible.

To make sure you don't accidentally claim the discount for longer than allowed, you won't be able to change your VAT registration date in Pandle if you have an existing VAT return under the Flat Rate Scheme.

Related articles

The VAT Flat Rate Scheme in Pandle

Running a VAT return

Submitting your VAT returns to HMRC

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