I've been helping someone out doing their VAT return. They are on FRS and I noticed they were calculating incorrectly whilst doing their yearly books in June.
They are CIS registered and were calculating the VAT after taking the 20% CIS instead of calculating the VAT on their total invoice.
Anyway I am just doing their next VAT return and have calculated their total incl VAT, taken the percentage of the FRS but just wanted to clarify what goes in box 6 of the Return.
Example:
So Total is £10,000, vat is at 10% so is 1000.00. Therefore excluding VAT is £9000.00.
Do I put the £9000 in box 6 or, because it's FRS do I put £10000 as that's what the £1000 was calculated from?
I only ask because the accountant has sent through adjustments for last year where he was doing it wrong and she has the following
Box 1 £1359.10
Box 6 £14,306.00
Now I make £1359.10 9.5% of £14306 so by that I would think I have to put the £10000 in the box???
Enter the turnover to which you applied the Flat Rate Scheme percentage, including VAT. You should also include the value, excluding VAT, of any supplies accounted for outside the Flat Rate Scheme, such as the sale of capital expenditure goods.
For example: if your VAT inclusive turnover is £10,000 and your flat rate is 8% put the £10,000 in this box and include the £800 in box 1.
Is the accountant asking you to add the adjustment to your return, to pick up the anomaly?
Thanks I realised that's what it was as I was doing it. Was just having a blond moment. Brain is a bit addled with Xmas coming up.
Thanks for the reply though
