VAT concern - confusing problem

Rich_T_2

Hi all,

If anyone can help me with the below I'd be massively grateful and will even pay for help

-
Nearly all my goods are now going outside the EU, I soon want to register for voluntary VAT as I am missing out on the VAT paid for stock purchases (which i can claim back).
And as the majority of sales go outside (or inside to EU to VAT registered) I do not charge vat to these customers (excluding UK which is rare).

Here is the concern;
I will be back dating my registration to FEB12 (you are allowed to go back 4 years if needed) as I had quite a big stock purchase in that month. Problem is I have already submitted my books for 11-12 SE and obviously used the full purchase price of stock (inc. the VAT) as an expense.

But,

When I get the vat back after I submit my return - it would mean the expenses for FEB-MARCH were not actually as big as stated on the SE form - does that make sense (it was only something I recently thought on and still struggling to fully understand still).

My book keeping is good and I have just started using 'Solar Account' so I can get a good breakdown of all the figures month on month etc.

What section in the HMRC would I need to complete to 'give them back' some money? :beer:

Kind regards,
Richard

pjclar02

Hello Richard

Just submit a revised 2011/12 self-assessment tax return with the VAT exclusive figures. This will give rise to an additional tax liability due by 31 January 2013

Nicola_Ed

Hi - I am not sure if you would need to revise your accounts for the previous year. I think you only account for the VAT when it is received. Until you have made the claim you were not entitled to the refund. A bit heavy going but the HMRC guidance is below.

http://www.hmrc.gov.uk/manuals/bimmanual/BIM40160.htm

Rich_T_2

Thanks guys, I can see sense in both methods (revising last years or adding it to this years).

If I were to revise last years the figure could easily be adjusted as I would just decrease the expenses claimed with the correct figure.
If I were to do it in this years, what kind of category would the vat rebate come under do you think?

Nicola_Ed

Hi

I think there is an "other income" box. I would not get too hung up on which box you put it - as long as the figure is some where. You can always put details in the extra details box if you want to disclose this to HMRC.