Backdated VAT reg- When to put on TAX RETURN

I would like to know where to put the VAT paid for my late arrears payment ?

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Hi everyone.

I made an error with my rolling vat calc and ended up de-registering for vat even though I should have stayed registered...

Anyway I'm back registered again now and It's been backdated with my Flat rate scheme backdated too... So I need to put my return in for that long period (since march 2017) and pay all that vat. (sigh) 

My question is - which year's partnership return will the vat payment go in that corresponds to the vat due for the tax year from (April 2017 to April 2018)?
Will it go when the arrears is actually paid - or when the VAT was originally crated / Due?

If it goes in the year of when I pay the arrears (2018-2019 tax year) my income will look very low (and sadly look bad for mortgage applications) and the 2017 to 2018 year will be inflated and artifically high? (And then could subject myself and my partner to paying high rate tax as we draw 100% of the profit each year)- Could we get around this by not drawing the amount of VAT from the partnership that will be paid in the late payment arrears in 2018-2019 year?

 

Thanks for the help!

Replies (6)

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By johngroganjga
26th Sep 2018 17:45

Speak to your accountant about where it will appear in the accounts, and in what period. Everything on the tax returns will follow from that.

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RLI
By lionofludesch
26th Sep 2018 18:13

You say "I should have stayed registered" then mention a partnership.

Are these two separate businesses ?

Then you say you draw 100% of the profit - this is only relevant to companies. Unincorporated businesses are always taxed on the profits for the period, whether or not withdrawn.

You're hopelessly confused. You need an accountant - especially if you're even considering getting a mortgage in the foreseeable future. If you're not careful this will end up being a bigger disaster than you've already made it with your bumbling.

You say "Could we get around this by not drawing the amount of VAT from the partnership that will be paid in the late payment arrears in 2018-2019 year?" - I don't even know what this means.

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By foreverfalling
26th Sep 2018 18:28

Ok thanks - I've made some errors in my original post....

Ok forget the part about drawing our income and my general rambling - that doesn't make sense (and it doesn't matter as we are always taxed on profits)

This is the same business. I deregistered by accident and now have registered again and voluntarily declared everything to HMRC.

My question is - will we be able to enter the VAT due on income for the period of 17-18 year (on the partnership return) even though we will be pay ing it later (in 18-19 year due to late registration)

If we can't put the vat in the original year it relates to then we will likely pay more tax than we need to due to going over the higher rate band. (Me and my wife split business profits 60/40)

Thanks

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By Tim Vane
26th Sep 2018 18:28

Take a motley collection of tax and accounts words. Put into a bag. Shake well. Pull out one at a time and place into a question.

Recipe for disaster pie. Would you like fries with that?

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JCACE
By jcace
26th Sep 2018 21:14

The FRS VAT should be accounted for (included in the accounts) in the same period as the related turnover.

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Replying to jcace:
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By foreverfalling
26th Sep 2018 21:56

jcace wrote:

The FRS VAT should be accounted for (included in the accounts) in the same period as the related turnover.

Thanks for your help and sorry for my ignorance everyone.

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