VAT

Hello. I am about to submit my latest VAT return and was surprised by the amount QB suggested I should pay, given my sales in the last quarter.

I think there is an error in the QB system. I'm using an FRS rate of 14% and QB appears to be calculating the 14% on the entire invoice value, including the VAT. I have attached a sample entry to show this problem. The invoice value is £250 so the 14% FRS VAT payable on this should be £35. However, QB has calculated this as £42 because the whole invoice amount (£250 + £50 VAT) has been used for the calculation. QB is effectively saying I need to pay VAT on my VAT. 

If I am correct, this needs fixing urgently! Thanks, Chris