At present Pandle only uses the UK VAT rate of 20%. However, when you come to enter transactions in Pandle you are able to override the VAT amount if it differs slightly by typing over it.
What about the 5% VAT rate?
The reason Pandle does not have a separate reduced rate for 5% is because this is usually charged on domestic energy. This means that the majority of the time, a business owner will want to use this rate to claim the energy on using their home as an office.
However, HMRC say that the full 5% VAT charged cannot be claimed, instead the VAT amount needs to be apportioned as per the amount of space the home office takes up. This makes 5% VAT redundant for the majority of business owners.
For any VAT claimed on domestic energy you can simply change the VAT amount Pandle calculates according to your apportionment calculation by typing over it.
You may want to seek advice on this from your accountant if you are unsure.