I have recently registered for VAT, as I am a business largely buying from the UK, and selling outside the EU. I've gone to fill in my online form, and have read the instructions, but am still not 100% sure I know what I'm doing. Can anyone help?
Say for example my figures are as follows:
Purchases (inc expenses, accounting fees etc) from inside the UK - £30,000 excl. VAT Purchases from inside the UK that included VAT - £25,000 excl. VAT Purchases from inside the EU (not UK) - £2,000 excl. VAT Purchases from inside the EU (not UK) that included VAT - £1,000 excl. VAT Purchases from outside the EU - £0
Sales to the UK - £10,000 excl. VAT Sales to the EU (not UK) - £5,000 excl. VAT Sales outside the EU - £50,000 excl. VAT
If someone could let me know whether my understanding is at all good, it would be HUGELY appreciated!
My main concerns being what box 2 is, whether to include UK sales and purchases in boxes 8 and 9, and if not, that VAT will be very low compared with sales, and if they do not know I am largely exporting, will they question this?
I have a half-decent financial brain, but may not be too hot on my terminology as this is the first time I have tried this myself.
Many Thanks in advance!
Mr M
-- Edited by Mr M on Sunday 23rd of January 2011 10:06:00 PM
The best advice I can give you is to book an appointment with a local Bookkeeper or Accountant and get them to explain how Vat applies to your business.
I can respect the fact you want to do it yourself and possibly save some money but it's pretty clear you don't understand a number of key areas. I can see you having problems later on.
hth.
-- Edited by ADAS on Sunday 23rd of January 2011 10:18:18 PM
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
Thanks for your response. I do have an accountant that deals with my income tax, but figured as VAT looked pretty simple - surely it's just claiming back on purchases that include it, and paying out on sales within the EU? - I could do it myself.
Unfortunately I'm also pretty up against it to get this return in now, so is there any chance someone who understands it could let me know if my calcs above are ok, or what the key areas I don't understand are?
No worries if not!
Also, ADAS, could you let me know what sort of problems you think I may have later on, as it seems fairly straightforward (once you have the hang of it!!!)
You will benefit loads if you take on a bookkeeper or accountant to do your vat return.
Also safer especially as your books will be under immense scrtiny if your input vat is always greater than your output vat.
If your near liverpool and for some reason wnat a seperate accountant/ bookkeeper doing your vat return, call Tony from Adas.
If you are near Donacster call Nick from GBM Accounts
If you are based nowhere near Liverpool or Doncaster, send me an email, dalbir@arithmo.co.uk and I will forward your email to one of the accountants or bookkeepers (who use Arithmo's online bookkeeping software) based near you.
I appreciate everyone's replies. I will be looking to get a bookkeeper to do this going forward, but so I can get it correct (or as near as possible) this first time, could someone let me know basically whether boxes 8 and 9 are for the EC EXCLUDING UK, or for the EC INCLUDING UK?
Would also appreciate knowing whether the Channel Islands should be included here? Assume not as they are non-EC?
