I have recently picked up a new set of books and the customer was previously on flat rate of 6.5%, however the two previous returns are laid out as follows: -
Box 1 £8500
Box 4 £8,475.69
Payable £24.31
Box 6 £65,500
Box 7 £60,400
Why would there be any balances in Boxes 4 and 7 and £8500 isnt 6.5% of gross sales £65,500.
There are no capital purchases and indeed in my opinion shouldn't even be any purchases displayed. I am at a loss to understand how the previous bookkeeper has done this VAT return and previous ones.
Am I missing something - please?
Replies (2)
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Look at their workings.
My guess is that the previous bookkeeper didn't know the client was on the FRS.