The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Revenue figure when using Flat Rate VAT
Post Info TOPIC: Revenue figure when using Flat Rate VAT
SecondTrader


Newbie

Status: Offline
Posts: 4
Date:
Revenue figure when using Flat Rate VAT
Permalink Closed

My understanding is the Revenue figure excludes VAT. I have a customer on the VAT Flat Rate Scheme paying 10%. 

 

So they invoice a customer showing a cost of £100 net plus 20% VAT giving a total cost to the customer of £120. Under the Flat Rate Scheme the VAT liability is 10% of the £120 = £12. 

 

So is the Revenue figure the £100 or £108 (£120 - £12 Flat Rate VAT)?

 

Many thanks.



-- Edited by SecondTrader on Monday 3rd of July 2023 10:27:24 PM

__________________
Artois


Guru

Status: Offline
Posts: 1313
Date:
Permalink Closed

Their taxable turnover will be the gross amount including VAT minus any VAT paid so in this case £108 will be included on the profit and loss

__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice
SecondTrader


Newbie

Status: Offline
Posts: 4
Date:
Permalink Closed

Thanks, much appreciated 



__________________
integraoutsourcing


Newbie

Status: Offline
Posts: 4
Date:
Permalink Closed

The Revenue figure typically excludes VAT. If a customer on the VAT Flat Rate Scheme pays 10%, the Revenue figure would be £100, excluding VAT. The VAT liability under the Flat Rate Scheme is calculated based on the total cost to the customer, including VAT. Therefore, the VAT amount of £12 should not be deducted from the Revenue figure.


Website: www.globalintegra.co.uk/

Contact us: +44 (0)20 7993 2949

__________________
SecondTrader


Newbie

Status: Offline
Posts: 4
Date:
Permalink Closed

confuse are you sure.... this contradicts previous answer



__________________
Artois


Guru

Status: Offline
Posts: 1313
Date:
Permalink Closed

 

Section 7.8 says "Accounts for businesses using the scheme will be prepared using gross receipts less the flat rate percentage"

So in this case £120.00 minus the 10% = £108.00 

https://www.gov.uk/guidance/flat-rate-scheme-for-small-businesses-vat-notice-733--2



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice
SecondTrader


Newbie

Status: Offline
Posts: 4
Date:
Permalink Closed

Thanks Doug



__________________
Leger


Master Book-keeper

Status: Offline
Posts: 3904
Date:
Permalink Closed

Hi Doug

I kind of see where Integra is coming from

I record it as £100 sales £20 vat

Pay HMRC £12 and journal £8 to income as "profit" on the VAT.

__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Artois


Guru

Status: Offline
Posts: 1313
Date:
Permalink Closed

Leger wrote:

Hi Doug

I kind of see where Integra is coming from

I record it as £100 sales £20 vat

Pay HMRC £12 and journal £8 to income as "profit" on the VAT.

 Hi John

Which means £108 is taxable, which is what I said



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Revenue figure when using Flat Rate VAT
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