VAT as an expense on SA

zygurat789

If you have included all the figures gross, I believe HMRC allow you to claim the vat paid as an expnse, it will give the same profit.
You are obviously confused about VAT and you need to sort it out sooner rather than later.
Because you're VAT registered you need to detatch any VAT at source and deal with everything net after that. The VAT on income you pay to HMRC less the vat on payments. It's as easy as that, yiou just need a VAT column.

lisa76

Well I use VT cashbook and enter figures that then show a VAT breakdown. I'm just re-checking the figures now and like you said I should get the same results if I do it net or gross. Thanks.

John_Pierpoint

Your husband is doing the full vat calculation output tax minus input tax or is he doing the flat rate percentage of turnover method, which makes it just another tax and allowable expense.

http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm

lisa76

He does output minus input, we thought this would be better than flat rate when we registered.

MrRedundant

DIY and a little knowledge can be dangerous.

Tell your hubby to pay the couple of hundred quid it will cost for an accountant to do this for him. Will be deductible expense and not be the inevitable HMRCbomb waiting to explode.

Its clear from the posts on here you dont have enough knowledge to accurately complete the SA without serious risk of error and penalties.