Confirm the payment of VAT

[YakivGood]

I would like to know if I can include VAT on my expenses based on bank statements.
For example, I work in the transport sector and provide transport services, buy fuel and have not accepted payment receipts for some time. I have paid VAT, can I record this VAT as incoming based on my bank statements?
If I pay for parking online, can I also include these VAT costs?
What are the obligatory documents that I can confirm the payment of VAT?

Thank you

 

[WaveJumper]

Welcome to the forum have a read here might be useful:
https://www.oneaccounting.co.uk/resources/what-proof-do-you-really-need-reclaim-vat/

 

[YakivGood]

Thank you so much

 

[UK Contractor Accountant]

f I pay for parking online, can I also include these VAT costs?

how do you know if vat was charged if you don't have the receipt?

some parking is vatable some isn't - there is a difference between off street and on street parking for vat purposes and whether the provider is vat registered and opted to tax

 

[SteveHa]

Are you yourself VAT registered? It makes a difference to the answer.

 

[YakivGood]

[QUOTE = "SteveHa, post: 3082829, member: 269336"] Вы сами зарегистрированы в качестве плательщика НДС? Это имеет значение для ответа. [/ QUOTE]
yes, I applied the FRS

 

[YakivGood]

how do you know if vat was charged if you don't have the receipt?

some parking is vatable some isn't - there is a difference between off street and on street parking for vat purposes and whether the provider is vat registered and opted to tax

I am interested more fuel, I know they charged VAT, because I use the same petrol station

 

[SteveHa]

If you are on the FRS you use gross figures for both income and expenses for tax purposes. You can't reclaim VAT paid, and the difference between VAT charged and FRS VAT paid is effectively treated as income. You don't need the VAT receipts.

 

[YakivGood]

[QUOTE = "SteveHa, post: 3082902, member: 269336"] Если вы работаете в ФРС, вы используете валовые показатели как для доходов, так и для расходов в налоговых целях. Вы не можете вернуть уплаченный НДС, а разница между начисленным НДС и уплаченным НДС ФРС фактически считается доходом. Квитанции по НДС не нужны. [/ QUOTE]


Тhank you, I know, but I need it for counting vat rate between the rate for my business and vat flat rate for businesses with limited costs. For each accounting period need to use appropriate flat rate percentage, is not it?

 

[MyAccountantOnline]

I would like to know if I can include VAT on my expenses based on bank statements.
For example, I work in the transport sector and provide transport services, buy fuel and have not accepted payment receipts for some time. I have paid VAT, can I record this VAT as incoming based on my bank statements?
If I pay for parking online, can I also include these VAT costs?
What are the obligatory documents that I can confirm the payment of VAT?

Thank you

If you are asking if you can claim VAT based solely on your bank statements the answer is no, have a read here -

https://www.gov.uk/reclaim-vat

 

[jimbof]

[QUOTE = "SteveHa, post: 3082902, member: 269336"] Если вы работаете в ФРС, вы используете валовые показатели как для доходов, так и для расходов в налоговых целях. Вы не можете вернуть уплаченный НДС, а разница между начисленным НДС и уплаченным НДС ФРС фактически считается доходом. Квитанции по НДС не нужны. [/ QUOTE]
Тhank you, I know, but I need it for counting vat rate between the rate for my business and vat flat rate for businesses with limited costs. For each accounting period need to use appropriate flat rate percentage, is not it?

I think you are misunderstanding the flat rate scheme.
You don't claim any VAT back except a very few kind of particular large items, so how much VAT you have paid and on what is generally unimportant.
The only thing you need to know per my understanding is:
1) what flat rate you have been allocated
2) what VAT attracting sales you have made.

You charge your customers your sales price + 20% VAT.
And you pay the tax man the lower flat rate of those sales. You get to keep the difference, and the idea is that difference should probably cover the VAT that you might have been able to claim if doing full VAT accounting. It works out profitable for some businesses. For my business it would be a bad idea to be on flat rate scheme.

You don't get to claim back the VAT on your purchases, so your bank statements and receipts for purchases are irrelevant for your VAT calculation.

 

[YakivGood]

I think you are misunderstanding the flat rate scheme.
You don't claim any VAT back except a very few kind of particular large items, so how much VAT you have paid and on what is generally unimportant.
The only thing you need to know per my understanding is:
1) what flat rate you have been allocated
2) what VAT attracting sales you have made.

You charge your customers your sales price + 20% VAT.
And you pay the tax man the lower flat rate of those sales. You get to keep the difference, and the idea is that difference should probably cover the VAT that you might have been able to claim if doing full VAT accounting. It works out profitable for some businesses. For my business it would be a bad idea to be on flat rate scheme.

You don't get to claim back the VAT on your purchases, so your bank statements and receipts for purchases are irrelevant for your VAT calculation.

Thank you for your reply.
My business is in the transport sector and I count my fuel costs. For a while, I did not take checks, the payment was made online with a card.

I have a VAT Flat Rate Scheme and in order to determine each accounting period whether I am a limited cost business and determine the correct rate (my business Flat Rate Schem or 16.5%)

I need to take on VAT account costs. And for this I also need a proof documents of my expenses. I know that I cannot claim a VAT refund.

 

[jimbof]

Thank you for your reply.
My business is in the transport sector and I count my fuel costs. For a while, I did not take checks, the payment was made online with a card.

I have a VAT Flat Rate Scheme and in order to determine each accounting period whether I am a limited cost business and determine the correct rate (my business Flat Rate Schem or 16.5%)

I need to take on VAT account costs. And for this I also need a proof documents of my expenses. I know that I cannot claim a VAT refund.

You're answering your own question I think. I'm not an accountant, but by my reckoning you need proof of spending in the categories that can take you out of the limited costs flat rate. Spending that was at a petrol station (which is all that you can see from a bank statement) doesn't necessarily qualify, as it could be on categories that don't count.

Surely you need the receipts anyway for these things to be deducted as costs from your business for the purpose of your income tax or corporation tax if a Ltd co?

If you don't have appropriate records I think the only thing you can do is accept the limited cost business for that period, improve your record keeping, and see for the next periods if you are coming out of the limited cost business category. Then you will have adequate proof in the case of VAT audit.

HMRC introduced the limited cost test because of what they saw as abuse of the flat rate scheme, so it stands to reason this might be an area they check compliance on (though I have no information about that).