VAT Return - Business Rates

[weebly_one]

Quick question. I have been asked to look at someone's VAT returns and check they are correct pending a VAT inspection, just so they can be pre prepared for any faults that may be found.

I have already found they have included Insurance costs in Box 7 of the return, so no financial implication of VAT due but I believe that not to be correct. What about business rates?

Please can someone just tell me if they should be included or not.

Thanks

 

[David Griffiths]

To be honest it does't really matter if they are in there or not as the box has no meaning, and putting them in there doesn't affect the amount of VAT payable. Technically they shouldn't be there as they are exempt.

You should check that the insurance premium tax hasn't been reclaimed because somebody thought it was VAT

 

[spidersong]

Technically exempt items should be included, so insurance should go in there.

Business rates being a statutory imposition are Outside of the Scope of VAT and shouldn't be in there.

(The old VAT 100's ask you to "Include zero rated, exempt inputs and EC acquisitions" in there)

However this in no way changes David's substantive points:
1) They're largely b******s and people don't generally care what goes in there as long as you're consistent (VAT officers do look at these boxes to get ideas of non-taxable spend in a business etc. and will get worried if you've used a different method each time to calculate it, but as it doesn't affect the payments it's not something they'll do anything about that'll cause you a problem)

2) Whatever you do don't put Insurance Premium Tax through the first 5 boxes (the number of people that see 17.5% tax on an invoice and immediately assume it's VAT!), the same goes for other taxes and foreign taxes but most of these aren't at rates you can easily confuse with UK VAT.

 

[ayaz786amd]

Insurance is exmpt so it should not be included in vat. Business rates are zero rated and these should be included.

Quick question. I have been asked to look at someone's VAT returns and check they are correct pending a VAT inspection, just so they can be pre prepared for any faults that may be found.

I have already found they have included Insurance costs in Box 7 of the return, so no financial implication of VAT due but I believe that not to be correct. What about business rates?

Please can someone just tell me if they should be included or not.

Thanks