Hi All
In need of clarification
Resturant is flat rate vat registered after 3 months into tax year.
Sales of £97,421.08
VAT Charged to customers is £11,714.59
Net Sales is £85,706.48
FRS VAT Paid is £8,083.07
In his self assessment tax return, I need to record his income.
I have taken income to be Net £85,706.48 + FRS Gain which is £3,631.52 = £89,338.01
OR should it be gross £97,421 to go into turnover and VAT paid £8,083.07 into allowable expenses
Please advise
Thanks
Replies (5)
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Disagree with my learned colleague
Your turnover shouldn't be affected by being on FRS.
The starting point should be the net sales of £85706.
You'll be left with a credit of £3631, which is "Other business income".
Income or turnover?
The OP switches between both, income most definitely is affected by FRS, turnover is not.
I would be more concerned about the actual amounts of VAT which seem rather low.
True
The OP switches between both, income most definitely is affected by FRS, turnover is not.
Perhaps he'd clarify.
Whatever is easiest
As long as you get to the right profit, HMRC won't worry. Different bookkeeping systems use differing methods, which illustrates that there is no hard & fast rule.