VAT return

[Allen0805]

Hi everyone.

Could i please have some help on my first VAT return?

I have been recording my sales and purchases and expenditure in an excel spreadsheet, some of my invoices are paid on a monthly DD.

On my VAT return if my invoice is not paid in full do i still include the total VAT figure if the invoice is dated within the current quarter that i am working on?

Any advice would be great.

Thanks in advance

 

[David Richards]

On my VAT return if my invoice is not paid in full do i still include the total VAT figure if the invoice is dated within the current quarter that i am working on?

That depends on the VAT scheme that you're using. Are you on standard accounting, cash accounting, flat rate vat ro some other VAT accounting scheme?

 

[Allen0805]

Sorry Dave, how do i know which scheme i am using?

 

[KM-Tiger]

Sorry Dave, how do i know which scheme i am using?

If you are asking that question, I would suggest:

• Get some advice from an accountant, you could be £'s better off by making the right choice.
• Use bookkeeping/accounting software, rather than a spreadsheet. VAT returns will then be dead easy.

 

[Gillie]

If you are asking that question, I would suggest:

• Get some advice from an accountant, you could be £'s better off by making the right choice.
• Use bookkeeping/accounting software, rather than a spreadsheet. VAT returns will then be dead easy.

Oh I don't know, back in them there dark ages, I believe quill and parchment were used!!

Did you register for vat or did an accountant do it for you?

 

[elaine@cheapaccounting]

You do not have to register for cash accounting - just use it.

See here:

http://www.hmrc.gov.uk/vat/start/schemes/cash.htm

 

[elaine@cheapaccounting]

Joining and leaving the Cash Accounting Scheme

Joining the Cash Accounting Scheme

You do not need to complete an application form or advise HM Revenue & Customs (HMRC) to start using the Cash Accounting Scheme.
You can start using the Cash Accounting Scheme:

• at the beginning of any VAT period if you are already registered for VAT
• from the day your VAT registration starts if you are not already registered

If you are already registered for VAT when you start using cash accounting, you must make sure that you do not account for VAT twice on any sales or purchases. You must identify and separate any transactions in your records that you have already accounted for using standard VAT accounting.

 

[MyAccountantOnline]

Hi everyone.

Could i please have some help on my first VAT return?

I have been recording my sales and purchases and expenditure in an excel spreadsheet, some of my invoices are paid on a monthly DD.

On my VAT return if my invoice is not paid in full do i still include the total VAT figure if the invoice is dated within the current quarter that i am working on?

Any advice would be great.

Thanks in advance

Hi

If you are definately using cash accounting (most small businesses do - so that they dont pay VAT on sales they havent received) you claim VAT on what you pay out, and pay VAT on what you receive. So if you part pay an invoice just apportion the VAT accordingly.

As a thought if you are keeping your own records and want some really easy software to use (which is also free) you might want to take a look at VT cashbook http://www.vtsoftware.co.uk/cashbook/index.htm
It makes completing VAT returns so much quicker and easier than Excel sheets. Lots of our clients use it

 

[scott14]

Sorry to jump the thread but can anyone show me what a VAT 100 form even looks like ?? I'm not VAT registered I'm just looking to get my head around the whole VAT issue

 

[David Richards]

Sorry to jump the thread but can anyone show me what a VAT 100 form even looks like ?? I'm not VAT registered I'm just looking to get my head around the whole VAT issue

There's a picture on the Businesslink website. And the HMRC website has information on which figures go into the various boxes.

 

[KM-Tiger]

... I'm not VAT registered I'm just looking to get my head around the whole VAT issue

Yes, do get a good understanding of the principles, but make life easy for yourself by using good software to do the work.

Many years ago (in the last century!) I did a VAT return by hand, adding up figures in a cash book and doing the necessary calculations. It took best part of a weekend of scribbling, cussing and resisting the temptation to set fire to the whole lot. To this day I'm not sure that I got it spot on.

We moved our bookkeeping onto software shortly after that. People sometimes speak of the 'administrative burden' of VAT. Frankly with good software there isn't one.