Any Fools Guides To VAT

dickieg

Im new to filling in a VAT form and wandered if anyone could point me in the right direction, ive got to submit Aprils by the end of May and am paniking, this will be the first one ive submited. Ive got the form basically ive got a franchise and on the invoice is what ive earned plus the VAT, i need to know which boxes to put what in ie is it the whole cost of an item ive bought or just the VAT paid, and do i need to send reciepts to back the said amounts up?.

Raksha

HMRC talk you through it here: http://www.hmrc.gov.uk/vat/managing/returns-accounts/completing-returns.htm

IIRC they need to know how much VAT you've charged your clients, what is the total you've charged your clients (EXCLUDING VAT). What you've purchased (again, exluding the VAT element) (if you've bought or sold anything from any EU country these are dealt with seperatly on the same form). You then take the largest VAT figure from the smallest one, and that's how much you pay (or get refunded if you're lucky)

HTH

dickieg

I know im probably being thick,and its probably straight forward, but i think i,ll see my accountant and let him show me how to do it, for there are other things i need to claim for i think, like at the moment i keep a tally of my daily mileage to claim back, im not sure but i think i can claim VAT on that i also need to know if it would be better for me to get a new car for the company that i have had to form, rather than keep claiming the 40p a mile. I have got to see him about how to pay myself aswell, i know to pay myself £6000 a year and the rest in dividends but how do i do it, do i just go in the bank and transfer x amount and then sort it out at the end of the tax year

silvercar

i know to pay myself £6000 a year and the rest in dividends but how do i do it, do i just go in the bank and transfer x amount and then sort it out at the end of the tax year

Yup........................

Money_Grabber13579

dickieg wrote: »

I know im probably being thick,and its probably straight forward, but i think i,ll see my accountant and let him show me how to do it, for there are other things i need to claim for i think, like at the moment i keep a tally of my daily mileage to claim back, im not sure but i think i can claim VAT on that i also need to know if it would be better for me to get a new car for the company that i have had to form, rather than keep claiming the 40p a mile. I have got to see him about how to pay myself aswell, i know to pay myself £6000 a year and the rest in dividends but how do i do it, do i just go in the bank and transfer x amount and then sort it out at the end of the tax year

The 40p a mile is noting to do with VAT. All you need is a VAT receipt when you buy the fuel, and that goes into inputs as normal. If there's any private use though, then you need to put a fuel scale charge in the outputs, depending on the emissions.

Elaine_Wilson

dickieg wrote: »

I know im probably being thick,and its probably straight forward, but i think i,ll see my accountant and let him show me how to do it, for there are other things i need to claim for i think, like at the moment i keep a tally of my daily mileage to claim back, im not sure but i think i can claim VAT on that i also need to know if it would be better for me to get a new car for the company that i have had to form, rather than keep claiming the 40p a mile.

Filling in the return is straightforward but if you've never completed one before it can be daunting. I would suggest you have a go at doing it yourself but pencil in the figures. Then ask your accountant to look over the return to make sure you've done it properly. Make a list of questions for any items you are unsure about and write down the answers he gives. Keep this list with your VAT records.

The reason I say this is that a new system of penalties came into force recently. It is an attempt to standardise the penalties across a number of taxes. To avoid penalties being imposed you need to show that you took "reasonable care". Even if you get it wrong because he gave you the wrong answer you have taken reasonable care. So the record of your questions could be invaluable.

Raksha

Don't confuse your tax return with VAT return. You can't claim back the VAT on fuel purchases if you are doing the 40p per mile scheme.

dickieg

Raksha wrote: »

Don't confuse your tax return with VAT return. You can't claim back the VAT on fuel purchases if you are doing the 40p per mile scheme.

Just been to accountants who filled out form for me, i should be able to do it next time, as regards the 40p a mile you can claim back VAT on 13p of every 40p as this is classed as fuel you have bought, as oppossed to just wear and tear, but you should still keep reciepts for fuel as the gov might ask for proof that you have been putting fuel in. HTH