A curiosity one on vat box 7 on VAT return.

collectors

Just had a friend's vat return & was curious about items not on a vat return for box 7. I will keep the sums fictitious.

Expenses “General”                                     = Nett          £100

Expenses “van MOT” with zero vat              = gross        £100

Expenses “post office” exempt vat               =  gross       £100

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Wage to sub contractor 1 that's not vat registered = gross £100
Wage to sub contractor 2 that's not vat registered = gross £100
Wage to sub contractor 3 that's not vat registered = gross £100 

Amount entered in box 7 is £300 & not £600. Is this correct????  Thanks

Pennywise

Exempts and wages wouldn't go on VAT return.  MOTs are outside the scope of VAT, not zero.

collectors

Pennywise said:

Exempts and wages wouldn't go on VAT return.  MOTs are outside the scope of VAT, not zero.

Hi, so would an MOT be entered in box 7 as Exempt or 0 rate ??? Sorry about not getting back sooner, i dont get notices ???

Sandtree

collectors said:

Pennywise said:

Exempts and wages wouldn't go on VAT return.  MOTs are outside the scope of VAT, not zero.

Hi, so would an MOT be entered in box 7 as Exempt or 0 rate ??? Sorry about not getting back sooner, i dont get notices ???

MOTs are exempt and therefore do not get included in box 7... only spend that is subject to VAT go in. Whilst 0% rated and Exempt may seem similar there are a lot of differences in their treatment and not only that one but not the other go into box 7