Vat return help please

hwalkerh

Couple of vat return questions i could do with help on please

I complete the vat return every 3 months based on the payments made in and out during that period (not the invoice date)

If something is paid out by the member of staff from there personal money, so i out there own money, do i put this in the period when the money left there account or the period that they put in their expense claim?

As i complete the vat on the period the money goes out we have a few payments which we are paying 17.5% vat on due to it being based on the amount agreed at the start but we are paying in monthly amounts

any help would be great

olly300

It's "their account" not "there account".

As you wouldn't know what the employee expenses are to repay them until the employee put in the claim I would do it on the date they submitted the claim.

If you aren't happy with this answer you can talk to someone tomorrow on the VAT helpline. Tell them you pay VAT on a "cash accounting" basis. The number is 0845 010 9000 and you can call them between 8am and 6pm.

Premier_2

HMRC website gives details of how to address the change in VAT rate

http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf

Section 8.3 is probably particularly relevent to you
It all depends on the effective tax point of the invoice involved

pelirocco

On cash accounting your vat input and output is calculated on the date you receive or payout money .

On staff expenses you claim the money back when you refund them their expenses ........ie when the money leaves your account / or you pay them .

Are you using an accounting package such as sage? ...........that will adjust the vat to show overall it was at 17.5%

paddyrg

Remember that for you to reclaim the VAT, the staff member needs to have asked for a VAT receipt when paying, and keep a copy of it whilst you use the original for your VAT files. At least that's what one accountant told me, check what yours advises in your circumstances!

hwalkerh

Thanks, i keep all receipts so always have copies of them. I just do the accounts for my partners business but for some purchases he pays and puts it through as an expense. Glad that i am only doing it for one as still finding my feet.
i don't have a accounting package just doing everything on spreadsheets at the moment.

pelirocco

hwalkerh wrote: »

Thanks, i keep all receipts so always have copies of them. I just do the accounts for my partners business but for some purchases he pays and puts it through as an expense. Glad that i am only doing it for one as still finding my feet.
i don't have a accounting package just doing everything on spreadsheets at the moment.

Then for the payments just show the amount of vat you paid in the vat column , with maybe a note for your records , saying it was at 17.5 %