VAT against taxable profits?

[jones87]

Hello,

When calculating C/T due, can the VAT bills be used against Taxable Profits, as an expense just like other invoices?

eg:

£10,000 Taxable Profit
-£1,000 VAT bills (FRS)
Therefore adjusted to £9,000, 21% C/T due = £1,890

Thanks,

 

[gouldie0]

I don't believe VAT counts as a deductible expense. :redface:

 

[Williams lester]

If you are on the VAT flat rate scheme, then the VAT paid over should be deducted from turnover and will therefore lower the CT bill.