Make sure you did not create a VAT 100% transaction and then left the option "inclusive of tax".
this will make the VAT 50% of the total amount since you informed the system the VAT is part of the total amount that you entered by selecting "inclusive of VAT".
Nonetheless, Custom VAT codes will not be accepted into the VAT submission.
To raise a VAT 100% transaction:
1st-Click on the (+) icon and select the transaction type that you need. Bill/expense for money out or a sales receipt/invoice for money in.
2nd-On the first line transaction, choose the Item/category you want to use. For the rate, enter £0.01, and for the VAT code, select the 20% Standard code.
3rd-On the second line, select the same item/rate. For the rate, enter -£0.01, and choose an Exempt code.
4th-The total of the invoice will be 0. On the bottom, you will be able to enter the value of the VAT you Paid or will claim on the VAT 20% total.
5th-Enter the correct date and Bank account that you want to use on this transaction.
6th-Save.
