Partnership Tax Return - Where to show Flat Rate VAT repayment/refund

Hi,

I'm having a last minute tax return crisis and would be really grateful for some clarification.

We're a partnership registered for VAT on the FRS and Annual Accounting Scheme.

I'm filling in our Partnership Return but am unsure where to record the VAT repayment we received for stock on hand when we registered at the start of our financial year.

I've recorded income and expenses including VAT (method 2 of HMRC's options).  However, HMRC say to include any payment to them under the FRS in box 3.63 as 'other expenses'.  In our case, we incurred £4297 of VAT liability during the year but received a £4713.25 repayment for stock on hand at time of registration.

At year end, we had received the rebate but still owed £1655.76 to HMRC re our VAT liability for the year.

As we made a loss for the year 2010/11, I need to determine:

a) Where and how to show the rebate on the tax return

b) Whether our loss should be reduced by the amount of the VAT refund in terms of the P&L

Currently, all i've done is reduce our stock book value by the amount of the refund/rebate so any help would be really appreciate.  As is often heard - this is now driving me slightly mad...

Many thanks in advance.