If you are on the Flat Rate VAT Scheme, you charge your customers 20% VAT on your sales but only pay HMRC a fixed % based on the industry you operate in. As such this category counts for the live difference between these figures.

The difference between the VAT you charge on invoices and the flat % that you pay HMRC on your VAT inclusive sales.

Any VAT on purchases - As you don't claim for these if you are on Flat Rate scheme.