VAT Flat Rate scheme query

[ceejbee]

Hi there, I am new to the forum.

I would welcome some advice please (rather than contact my accountant and get a huge bill!).

I was up until end of 2007 on a cash accounting VAT scheme and have now changed to a flat rate scheme as I have relatively low need to claim back vat on expenses / material.

Anyway, I have got my first VAT return through (exactly the same form as before) but am not sure how to fill it in.

As I understand it I need to send the VAT man 11% (my rate) of my invoiced / paid work.

Let's say I have invoiced £30,000 incl VAT @ 17.5% which would mean £25,533 without VAT. Which figure do I work the 11% out on - the bigger £30k or the smaller £25.5k?

Then - how do you fill in the form? I haven't been able to find anything on the Gov site.

Many thanks

ceejbee

[Carbon Neutral Copy]

Hi Ceejbee and welcome to the forums.

It is your total turnover for the period that you take your 11% from. So that's the first of your two figures in the example you gave below.

You can register to complete your VAT returns online via the HMRC website. Very quick and easy.

Hope that helps

Vicky

[Peter W]

As you were on cash accounting, you can continue to pay VAT only when you have been paid.

Assuming that £30,000 is the money that you have received, you work out the VAT at 11% of the £30,000.

On your VAT return, you would put £3,300.00 in boxes 1, 3 and 5. Put £30,000 in box 6. The rest of the boxes are nil. This assumes that there is no input VAT to reclaim (for example, on the purchase of any capital equipment for over £2,000).

Don't forget the 1% discount for the first year of being VAT registered though!

[ceejbee]

Thanks Vicky - that is one of the questions sorted!

I have gone online to register but they say it will take 7 days to send out my activation pin etc and I need to sort this out now......my own fault having been away for a bit.

Anyway, shall I fill the VAT100 form in as usual and just work out 11% of the total and pay them that?

If not I don;t see how the form is set up to work with the flat rate scheme!

ceejbee

[Indizine]

it wil come quicker than 7 days generally - mine took just 2-3 days only last week. You have until 30th May if your return was for period ending 30/4/8 so plenty time.

Peter W has explained how to do the vat return for flat rate.

[ceejbee]

As you were on cash accounting, you can continue to pay VAT only when you have been paid.

Assuming that £30,000 is the money that you have received, you work out the VAT at 11% of the £30,000.

On your VAT return, you would put £3,300.00 in boxes 1, 3 and 5. Put £30,000 in box 6. The rest of the boxes are nil. This assumes that there is no input VAT to reclaim (for example, on the purchase of any capital equipment for over £2,000).

Don't forget the 1% discount for the first year of being VAT registered though!

THANK YOU PETER W - I WILL FILL THE FORM IN LIKE THAT AND THEN SEND THEM THE MONEY - THE BIT I DON'T LIKE DOING!

CEEJBEE

[Indizine]

well you're only sending on money you've collected from other people, so it's not like you're giving them your own cash.

[Peter W]

That's usually true, but if you are selling to the general public, and some of your competitors are not VAT registered, it can certainly feel like your own money .

[Indizine]

ah well yes, there is that I suppose. But you could view it that some competitors are only doing a low turnover so aren't dominant in the market place.