Turnover include VAT or exclude VAT

Discussion in 'Accounts & Finance' started by jay1, Jul 7, 2009.

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  1. jay1

    jay1 UKBF Newcomer Free Member

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    Im doing my accounts for companies house and the inland revenue. I am vat registed.

    If my total sales including vat = £11750

    Do I declare a turnover of £11750 which includes vat or £10000 which excludes vat?
     
    Posted: Jul 7, 2009 By: jay1 Member since: Jul 7, 2009
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  2. taxattack

    taxattack UKBF Newcomer Free Member

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    Exclude the Vat - I'm assuming you are not using the Flat Rate Scheme.

    Chris
     
    Posted: Jul 8, 2009 By: taxattack Member since: Apr 7, 2008
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  3. jay1

    jay1 UKBF Newcomer Free Member

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    Im paying VAT at the standard rate 15% and I reclaim VAT on purchases.
     
    Posted: Jul 8, 2009 By: jay1 Member since: Jul 7, 2009
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  4. Tom McClelland

    Tom McClelland UKBF Ace Full Member

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    Jay1,

    If you're needing to ask questions as basic as that then you literally have ZERO chance of getting the full accounts and CT600 right. You need to retain an accountant to do it for you.

    They'll do your full accounts and CT600 and produce the CH accounts as a side effect of that.

    I have 25 years of bookkeeping experience to fully reconciled TB and management accounts. I wouldn't dream of trying to file my own statutory documents.

    If by some amazing fluke you manage to file accounts and CT600 that they find acceptable they'll still almost certainly be wrong, and you'll be vulnerable to big fines if you're inspected.
     
    Posted: Jul 8, 2009 By: Tom McClelland Member since: Feb 10, 2008
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  5. jay1

    jay1 UKBF Newcomer Free Member

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    Cheers tom, i agree with you there! Before I got hold of the software I dint have a clue how all this stuff works and still dont:|. Im using a software that automatically fills in the CT600 for me after I put all my accounts (invoices) into it. I need to complete the P&L, balance sheet at it automatically transfers the data onto the CT form. Ive done two complete sets, one with the VAT figures added & the other without the VAT, just net sales. Of course they both look different, so I need to know which one to submit.

    The reason Im asking is because some people (on the internet) are saying turnover is basically all the sales invoices added together, then others are saying turnover is all the NET SALES added together, because the VAT goes to customs and its not part of the turnover figure. They both seem to make sense in a way which is confusing. Which one is though, Turnover with VAT or without VAT?

    Thankyou, Jay
     
    Posted: Jul 8, 2009 By: jay1 Member since: Jul 7, 2009
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  6. RAL

    RAL UKBF Enthusiast Free Member

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    The obvious question to ask is that are you vat registered? I know the answer.

    So if you vat register and not on any special scheme, then you need to use net sales and net purchase figures (Exlcuding vat).

    If you are not vat registered then it is inclusive figure you take i.e. including vat as you can not charge vat and you can not claim vat as you are not vat registered.
     
    Posted: Jul 8, 2009 By: RAL Member since: Aug 31, 2008
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  7. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

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    Please do speak to an accountant - they will save you a great deal of time, hassle, potential fines, penalties and tax!!

    We spend many years learning what we do and you really cant be expected to deal with it without training and experience.

    The relatively small cost of accountancy fees will be money very well spent.
     
    Posted: Jul 8, 2009 By: MyAccountantOnline Member since: Sep 24, 2008
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  8. jay1

    jay1 UKBF Newcomer Free Member

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    Thats what I thought. It doesnt make sense to pay corporation tax on VAT. I just wanted to make sure. Thanks Ral & everyone for your contributions.

    Cheers.
     
    Posted: Jul 8, 2009 By: jay1 Member since: Jul 7, 2009
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  9. Zarah

    Zarah UKBF Newcomer Free Member

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    You need to speak to an accountant - but as far as i know - exclude it.
     
    Posted: Jul 8, 2009 By: Zarah Member since: Jul 7, 2009
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  10. jay1

    jay1 UKBF Newcomer Free Member

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    Cheers Nicola, your right. Its prob more hassle than its worth trying to save a few quid on an accountant. Just have to find someone thats not charging me my left arm, I know these things can cost alot of money but its one less thing to worry about at the end of the day!
     
    Posted: Jul 8, 2009 By: jay1 Member since: Jul 7, 2009
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  11. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

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    Yes if you are VAT registered your income and expenses exclude VAT (slightly different if you use the flat rate scheme)
     
    Posted: Jul 8, 2009 By: MyAccountantOnline Member since: Sep 24, 2008
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