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 said
Tue Jul 4 08:19 2023
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
SecondTrader said
Tue Jul 4 08:41 2023
Thanks, much appreciated
integraoutsourcing said
Fri Jul 14 07:34 2023
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.
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
Thanks, much appreciated
Website: www.globalintegra.co.uk/
Contact us: +44 (0)20 7993 2949
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
Thanks 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