The Commerce Journal,Business and Local Businesses
*The Commerce Journal>>>United Kingdom Taxes

Doing my first VAT Return?


Could someone please help me by telling me exactly what figures i need to take into account for my vat return, the ones i think are correct are; Purchase figures, sales, credit cards, petty cash.

Is there anything else i need to take into account?

Thank you

Simple.
Step 1. Add up all of your sales for the period taken from invoices issued in the period. Work out the Vat element, this goes in Box 1.
Step 2. Work out the Net amount (total sales minus Vat) and this goes in Box 6.
Step 3. Then add up all of the purchase and expense invoices received in the period. Include petty cash expenses so long as you have a receipt for them, but don't include wages, national insurance or income tax.
Step 4. Then work out the amount of Vat there is to claim, that goes in Box 4.
Step 5. The net amount (total purchase/expenses MINUS the vat claimed) goes into Box 7.
Step 6. Box 2 should only be filled in if you obtain goods from the EU, in which case you take the value of the goods for the period, multiply by 17.5% and that goes into Box 2.
Step 7. Box 3 is the total of Box 1 + Box 2, so if you do not obtain any goods from the EU then Box 3 will simply be the same as Box 1.
Step 8. Box 5 will be the total of Box 3 Minus Box 4. If it results in a negative value, then you will get a repayment from HMRC, but DO NOT put a minus sign in the box as this will confuse things.

This is assuming you are Invoice Accounting. If you are cash accounting then apply the same principles but base the figures on Sales that have been paid and Expenses that have been paid for, rather than the invoices in a period.
Hope that makes sense.

I'm not an accountant and it's YEARS since I ran my own business and did VAT returns. Here is a tip from me, learnt at great expense, the hard way.

DO NOT GET THEM IN LATE. I used to get fined every quarter.

Do you use manual book-keeping, if so, the above that you have mentioned is all you need. If you are using Sage accounting, it does it for you.

If this is your first VAT return you may be well advised to let your accountant check it for you.
VAT works on either a "Cash basis" or an "Invoice basis".
There are rules to determine which scheme you can use.
Also, if this is your first VAT return you are able to reclaim VAT on any business assets you have bought in the previous 3 years (provided you have VAT invoices)......such as computers, tills, fittings and fixtures and other equipment used in the business.
If you had been in business previously and only registered for VAT recently because you reached the turnover threshold for compulsory VAT registration, then you can also reclaim the VAT you have paid on any stock held at date of registration.
If you are thinking of reclaiming VAT on fuel for your car you also need to make sure this is to your advantage (as there are scale charges to be adjusted for according to the CO2 emission of your car)
As you can see...it is quite complicated.....and I suggest you get help with your fist VAT return.
Good luck with your business venture in any case !!

Tags
  Atlanta   Other - Business & Finance   Other Taxes   United States Taxes   United Kingdom Taxes   Spain Taxes   Singapore Taxes   Mexico Taxes   Ireland Taxes   India Taxes   Germany Taxes
Related information
  • Question in accounting?

    This doesn't make much sense. You've got the wrong figures from somewhere.

    ...
  • Is the fund for the awarding of large value gains a scam?

    Yes, that's a scam. Anytime you are asked to pay money for something you have "won", that's a scam.

    ...
  • Emergency tax code of 522L, but circumstances haven't changed for years?

    im on 522L same as my dad and it's not emergency tax...

    ...
  • I'm a self employed builder and have purchased (through the business) a house to renovate and sell on.?

    As you're self employed, there is no "company", only you. You can claim all the expenses incurred in the renovation, plus the usual ancillary costs which you suffer as a builder. Th...

  • Do you know when i'll recieve my child tax credits over the holidays?

    As the wednesday is apublic holiday youll probably recieve them the monday 24th at the latest and the same the following week monday 31st. Your child benefit will also be paid early depending when ...

  • Who introduced pay per view t.v. into the u.k. and why?

    I think Sky- to make lots of money and ruin it for sports fans with just terrestrial..

    ...
  • I'm working my notice at a company in financial trouble, they owe me 拢610 in accrued expenses.?

    Until the company is put into administration (receivers) they owe you the money and must pay you. See the highest person in the company,MD or Chairman and give him a written account of what is owed...

  • Can you pay Nation Insurance tax with out having a NI number?

    Too me ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha

    ...
  •  

    Commerce Categories--Copyright/IP Policy--Contact Webmaster