Flat rate Vat & Customer refunds

[Postforce]

Hi all,

Quick question if I may - A Customer prepaid for a job a while back which was in the last return and vat was paid to HMRC on the whole amount at the appropriate percentage. Now a refund is due to the customer on part of that amount - how is that treated on the next return please?

Tks in advance.

 

[David Griffiths]

Deduct the refund from sales in the current quarter and apply the flat rate to the net figure

 

[Postforce]

Thanks David - will do.