Hi, In VAT Flat Rate Scheme, invoice was £10,000 + VAT (20%) = £12,000 received by the business. Applicable FRS VAT Rate is 14% for the business, therefore business has paid £1,680 to HMRC. This is the only transaction during the year and business is preparing its accounts now. Is business taxable income £10,000 or £10,320?
19th Mar 2012 15:32