Hi,

I am on the Flat Rate Scheme for VAT.

when I run my P/L report my expenses show the net amount instead of gross. Because I do not claim back the VAT from my expenses, the report is showing less expenses than I have actually paid that month (due to excluding the VAT from the total)

when i need to run the report to prepare for my income tax for example, the expenses shown on the report will be incorrect and will show less than I have actually paid. (Which would result in me paying more tax)

Am I missing something? Is there a solution for this?