The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Retail Vat Scheme
Post Info TOPIC: Retail Vat Scheme
Sharon Eyre


Senior Member

Status: Offline
Posts: 423
Date:
Retail Vat Scheme
Permalink Closed

I have just taken a client on that is using the retail scheme using the apportionment scheme- my first time processing this type of Vat

Question- when you calculate the purchases do you just include cost of sales purchases or everything including rent, utilities , my invoices etc? (the bit highlighted in number 2 below)

The HMRC website doesnt make it clear surprise surprise!

 

  1. calculate the total value of goods purchased for resale in the VAT period for each VAT rate.

  2. Divide the total of purchases for each VAT rate by the total for all purchases.

  3. Multiply the outcome by your total sales, divided by 6 for 20% rated goods, and divided by 21 for 5% rated goods.



__________________

 

 

Regards

Sharon
Cheshire


Master Book-keeper

Status: Offline
Posts: 8646
Date:
Permalink Closed

Hi Sharon
Section 7.5 of Notice 727/4 says 'Exclude from your scheme any purchases of goods or services which are not for resale, for example your business overheads such as gas, electricity and rent', so these are excluded from 'purchases' in your example.
HTH

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Sharon Eyre


Senior Member

Status: Offline
Posts: 423
Date:
Permalink Closed

Thank you Joanne- I did think it was excluded but just wanted to make sure


__________________

 

 

Regards

Sharon
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Retail Vat Scheme
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About