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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15835
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I run a small family business , I am trying to complete my

Resolved Question:

I run a small family business , I am trying to complete my self assessment online, I am registered for vat and charge my customers vat, I also claim back any vat I pay on my vat return, , I pay my vat on time at the end of every quarter therefore this is money I haven't earned I have simply collected it for HMRC., there is no box for vat on the online self assessment form , do I include my figures net of vat, or do I put in gross figures with vat included, in my total turnover?. then add the vat paid to HMRC as an allowable expense to by deducted from my profits. thankyou
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

Assuming you are registered under the regular VAT scheme as opposed to the flat rate VAT scheme, you should not include the VAT you charge to your customers in your turnover nor should you include the VAT you pay on your expenses for the purposes of your self-assessment tax return. Turnover and expenses should be shown net of VAT. As you know, you are simply operating as an unpaid tax collector for HMRC and in net terms your business pays no VAT.

I hope this helps but let me know if you have any further questions.

TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15835
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

how do I find out which vat rate scheme I am on , I am not sure, kind regards MARIAN

Expert:  TonyTax replied 2 years ago.
If you were in the flat rate VAT scheme, you wouldn't pay over all the VAT you charge nor would you net off the VAT you have paid on your purchases before making that payment (except for exceptional purchases) which is what you will do if you are in the regular VAT scheme.

Instead, you would pay over a set amount of your VAT inclusive turnover to HMRC each quarter depending on the type of business you are in, say 12%. The other 8% of VAT you have collected you keep and pay tax and national insurance contributions on it.

Take a look here for information on the flat rate VAT scheme.
Customer: replied 2 years ago.

I must be in the regular vat rate then, as I definitely hand over all the vat I collect from my customers once I have offset the vat that I have been charged myself. thankyou for your help , much appreciated Marian

Expert:  TonyTax replied 2 years ago.
Thanks for accepting my answer.
Customer: replied 2 years ago.

already rated the service as excellent, thanks for the prompt reply, I can get my tax return done and dusted this weekend now, . thanks again. MARIAN

Expert:  TonyTax replied 2 years ago.
I have to respond as if I don't I cannot answer other questions. Please don't respond.
Customer: replied 2 years ago.

hi there I have already rated you as excellent , if I leave another rating the website says I will have to pay an additional fee, you answered my question and I am all sorted thankyou for your time, regards Marian

Expert:  TonyTax replied 2 years ago.
Just ignore any emails. Don't rate again or you will be charged again.

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