Help with VAT - What to do with the extra money?

JimmyTheWig

KGriff wrote: »

So he deserves some credit me thinks for doing things the right way. I am sorry to see that JimmyTheWig in his response earlier does not see it entirely our way, but like I said it is a learning curve.

Hi,

I hope it didn't sound like I was having a go.
Your son is doing the right (all round) thing in declaring his earnings and doing the right thing (for him, so why not) by being VAT registered.

My point was that you can't include contributing to the government coffers as a reason for registering for VAT in this instance as it isn't.


Thanks,

Jim

KGriff

JimmyTheWig wrote: »

Hi,

I hope it didn't sound like I was having a go.
.......

My point was that you can't include contributing to the government coffers as a reason for registering for VAT in this instance as it isn't.


Thanks,

Jim

Jim,

I didn't think you were having a go at us, I just wanted to explain that there were many reasons for us choosing to register for VAT not least that it a good experience in a small business to understand the ins & outs of all applicable taxes/allowances that may apply to his case.

Our real reason is there is a small profit to be made, fortunately I am quite up to speed with excel and so all we do now is enter his jobs and weekly fuel receipts and the spreadsheet now does all his input/output vat and generates totals for each 3 monthly VAT return. It will also produce the totals for all of his self assessment form... so there is little work for the extra VAT income he earns.

Of course it has taken us a few months to get the workbook correct & to the stage where we have it doing all the work (main difficulty was breaking the VAT up into periods and carrying totals between workbooks as we start a new workbook each Tax year in April but our VAT period started 1st March Yes I know now we could have got that altered ... but I found that out too late)

The calculations and totals are now correct (hopefully)with various checking procedures in place, though I did find excel's 'precision as displayed' option not being enabled by default caused some intial rounding down errors in a few places - still have now got it resolved and things should be easier from this point forward.

Again I must thank everyone who took time-out to comment on this short thread and I hope it helps a few others.

Kind regards to everyone.