VAT pickle

VAT pickle

Didn't find your answer?

I have really tied myself up in knots over this and cannot seem to come to a sensible conclusion.

I do need to find myself a decent accountant but until such time.... could one of you wonderful people help me please?

By way of background, I currently trade as a sole trader selling goods over the internet.

 

Turnover is approx £15k per month with about £1k being "foreign". The split thereof varies but its probably only about £500 to EU and £500 to non EU. This is mainly to individuals who are not VAT registered but on occasion we sell to shops in Ireland. They have provided us with VAT numbers so we have zero rated those sales.

 

I am on the flat rate scheme as well.

 

My question is, what on earth am I doing with the non-UK sales?

 

Box 1 I have included all sales, but box 8 is where I am struggling.  Am I supposed to be disclosing all EU sales under here? Or is it only EU sales to people with VAT numbers?

 

I have just received the form to complete from HMRC and its suddenly dawned on me that I might have completed the VAT return wrong, albeit the total tax should be correct (as I understand I basically pay a flat percentage on ALL sales (i.e. based on box 1) in line with the flat rate scheme).

 

The form as it stands will not tally with what I've put in box 8 which concerns me. Or is it normal that this doesn’t agree?

 

Help!!

Replies (6)

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Portia profile image
By Portia Nina Levin
25th Apr 2015 12:27

(No subject)

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Replying to Wanderer:
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By Jekyll and Hyde
20th Mar 2015 16:11

Portia

Portia Nina Levin wrote:

Stage 1: go and see an accountant.

Stage 2: if the accountant from the previous stage does not mention the distance selling provisions, go and see another accountant and keep repeating this stage until one does,

Stage 3: now you have an accountant that knows what they're talking about, you'll be fine. It is what you should have done in the first place.

Sorry I disagree with your process, however I am not trying to be rude here. For me there is an immediate Pre stage 1 process. 

Search Aweb forum any answers. Look at the accountants and answers and then consider someone that you trust will give this initial advice (based on previous answers to similar questions) for example Portia. Once you have done this ask them if they are prepared to offer initial paid advice on this matter.

My view is stage one could take time to actually achieve the desired effect and as we are now only 1 week away from most schools Easter holidays a meeting may not be immediately forthcoming. A delay could prolong any unnecessary problems.

Some initial paid advice around the subject matter may also assist the OP in establishing the right accountant to proceed forward on.

edit. Posted before OP reply.

Thanks (2)
chips_at_mattersey
By Les Howard
20th Mar 2015 15:57

... and

If you are making sales outside the UK, why are you on the Flat Rate Scheme?

Paying a good Accountant is to do with value, not cost.

Thanks (1)
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By mel19632
20th Mar 2015 16:06

 

 

Thanks Portia

 

The reason I don't have an accountant is because this was a tiny business that has suddenly grown very rapidly.  We literally do not have time to start speaking to accountants at this particular moment but sales should be a bit quieter in the summer.  That’s when we plan/will have time to deal with it!  it's not that we can't afford/don't want to pay an accountant.

 

With flat rate – are you not allowed to be on it with foreign sales? Ours are tiny so as far as I can see, we are still better off on the scheme as we have a very low % rate.

 

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By nscofield
20th Mar 2015 16:08

If you've got time to be asking accountants on here to give you free advice then you've got time to visit an accountant.

 

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By mel19632
20th Mar 2015 16:35

 

 

What a sensible suggestion – excellent idea.

 

 

 

Portia, would you be willing to give some paid advice? Please PM if you have capacity.  I am not sure where you are based so perhaps telephone would suit you?

 

Or if there is anyone else who would be interested please let me know.  This could save me a job in the summer!

 

Thanks for all the people who have taken their time to comment.

 

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