now you mention the sales day book, i'm thinking the vat of £956 has already been entered in the vat column of the sales day book when the credit sales was first made, could this be right?
-- Edited by mk10018 on Tuesday 27th of March 2012 07:31:00 PM
-- Edited by mk10018 on Tuesday 27th of March 2012 07:32:08 PM
The vat of £52 is 20% of cash sales of £260, and this is the amount i have to include in box 1 (along with other figures) in the vat return form.
but what about the cash from debtors of £4,780?
20% is 956, but this figure is not included in box 1 (vat due in the period on sales and other outputs). Why is the £956 not in box 1? Shouldn't this go to the goverment along with the £52?
Based on what you've written there, I'd say there's missing information: Is it dealt with in another/related question?
Is the hypothetical business this question is based on operating VAT on a cash basis?
If so, there should be VAT declared on the money received from debtors.
If not, the VAT on non-cash sales should be declared based on the invoices raised in the period, so you should also be looking at a sales day book to complete the box 1 figures.
There are possible exceptions: For example, if this is the company's first VAT return, operating on a cash basis for VAT, and the cash from debtors just happens to all come from invoices raised prior to registration. There are other possibilities, but they're all a bit unlikely for what should be a fairly simple question!
__________________
Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Yes you are correct in saying that the VAT of £956 will already have been included in the sales day book when the invoices were originally recorded. The VAT on the cash sales is now being recorded as they would not have been included in the sales day book.
