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Cis Subcontractor Ltd Company Accounts and Tax

Painting business without Gross Status for CIS , some payments have 20 percent deducted at source

What is the turnover figure for the Accounts 

Inv Example 


labour 500    
Materials 73.74VAT @20% 114.75

Total            688.49

Cis Ded        100

Net Due   588.49

Company Operate Flat Rate Scheme 9.5%

what is the sales figure here 688.49 less the flat rate vat 

or 588.49 less the flat rate vat 

Managed to confuse myself so need to clarify HELP please 






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10th Aug 2018 17:45

As you are operating the FRS for VAT, the gross sales figure is £688.49. At the end of the VAT quarter, you will deduct the FR VAT from the gross sales, including the £65.41 applicable to this sales invoice. Hence, turnover will be £688.49 less £65.41. Your VAT "profit" from operating the FRS on this invoice will be £8.33.

The CIS tax deduction of £100 is reported to HMRC on a payroll EPS and debited to Tax Recoverable, to be set against any PAYE (including CIS tax on subbies) due monthly, with any balance to be refunded by HMRC after the end of the tax year or on application to HMRC, set off against any CT liability.

Thanks (1)
By Ruddles
to Euan MacLennan
10th Aug 2018 23:43

That’s one way of accounting for it - other options are available.

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to Ruddles
11th Aug 2018 11:21

Such as ...?

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to Euan MacLennan
11th Aug 2018 14:04

Well, with all due respect, I would say that the turnover is the invoice total net of VAT, £573.74.

Any surplus created by the FRS should be treated as "other income".

But surely Maverick's accountant will sort this out for him.

Thanks (1)
to lionofludesch
12th Aug 2018 13:43

I disagree.

The VAT "profit" of £8.33 is income received from the company's customers in respect of goods and services supplied by the company to its customers. You have to indulge in contortions of accounting policy not to treat this as (part of) turnover. "Other income" is meant to cover money received from other sources such as rent from tenants or interest from banks (when they used to pay interest).

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to Euan MacLennan
13th Aug 2018 09:19

I respect your view, Euan, but, imho, you shouldn't be able to manipulate turnover by choosing a different VAT scheme.

Edit - Surprised myself by finding the confirmation of that at para 24.11 on page 92 of FRS 105.

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