Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
You will take a long time to reach the VAT turnover level as it will be based on the 6% you make only not on the full amount. Does that assist your thoughts?
I do hope that you have found my reply of assiatnce.
The threshold is now 83K and your business books will show the 6% turnover, nothing more. The other sums will be credited direct to debtors and creditors ledgers.
Let us say you paid a girl 940 quid. The book keeping entry would be Dr Creditors, Cr Bank. You receive 1000 so you post Dr Bank Cr Creditors 940 Cr Fees received 60; simple.