How to record benefits from flat rate VAT scheme

[cjcass]

Hi,
How do I record/account for the benefit gained from a flat rate vat scheme. Using an example of sales of £1,000 I recover £1,200 from the client and pay £140 (14%) to HMRC. Do I record the sales figure throughout my accounts and all returns to HMRC as £1,060?

 

[Scalloway]

There are different ways to do it. I would show your income net of VAT and the payment to HMRC as a business expense in your accounts.

For VAT you pay 14% of the gross to HMRC ie £168.

 

[Plus Minus]

I agree with Scalloway. There are different ways to do it, according to your VAT scheme. Consult our Landlord page and download our VAT guide for more information.

 

[cjcass]

many thanks.