INC GROSS SALES & EXPENSES IN P&L IF USING FRS?

Do you include gross sales & gross expenses in your P&L account if using VAT Flat Rate Scheme?

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Do you include gross sales & gross expenses in your P&L account if you're using the the VAT Flat Rate Scheme?

 

Thank you so much.

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By GR
25th Feb 2017 18:26

Gross expense and net sales.

The output (sales) VAT is a balance sheet item (liability) and is therefore not shown in P&L.

Any profit/surplus made from being on the flat rate scheme can be shown as additional/other/miscellaneous income in P&L.

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Replying to GR:
By Ruddles
25th Feb 2017 18:42

Or net sales and net expenses.

But never gross sales

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RLI
By lionofludesch
25th Feb 2017 21:54

Gross sales specifically not permitted by FRS 102/105.

If we're talking about an unincorporated body (why do querists think this isn't an important bit of information?), the position is less clear but I'd take the FRSs as replacing UK GAAP and follow those.

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Replying to lionofludesch:
By johngroganjga
26th Feb 2017 12:06

Why is it less clear what the correct treatment of output tax is if the entity is not a company? Surely the same principles apply regardless.

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Replying to johngroganjga:
RLI
By lionofludesch
26th Feb 2017 12:13

Personally, I agree with you.

However, on the basis of what I see from time to time, others do not.

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