Flat Rate VAT

VAT

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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?

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By petersaxton
27th Oct 2016 12:55

Look at their workings.
My guess is that the previous bookkeeper didn't know the client was on the FRS.

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By Tinas BKS
27th Oct 2016 13:19

It would seem that way but the sales vat isn't even 20% either, it just doesn't make sense.

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