FLAT RATE SCHEME and ACCOUNTS

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?

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Oh no - not again

BKD |
BKD's picture

As BKD said,

SteveOH |
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Business taxable income is £10,320

Chris Smail |
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or then again

Marion Hayes |

So...

Kent accountant |
Kent accountant's picture

... and I go along with

Fred Smith |

I'm going with my trusty (dusty) ATT book

Constantly Confused |
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Here is the answer...

martin.jackson |

Interesting. With a

Bob Long |

FLAT RATE

chas01 |

Limited companies are covered

Bob Long |

Personal preference

Tom 7000 |
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Guys,

khalm0 |

The flat rate % is applied to

Fred Smith |

Fred is right

Tom 7000 |
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This is where the VAT tutor

khalm0 |

Tom - I follow extract from return guidance from HMRC

Marion Hayes |

Sorry, Tom, but ...

BKD |
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