Really appreciate if anyone could anyone throw me a bone on this please. New financial year and we are no longer registered for vat, so just need to go through the pain this once, for last financial year.
Basically we are on the flat rate scheme. ( 12% ). We were only registered for part of our the financial year. ( won't go into the why's ).
So anyway, I taking option 1 of 2 in the SA800 for VAT registered on flat rate scheme and putting all the numbers in without the vat. Not an problem except for a couple of pesky box's. ( always the way )
The help sheet says....
"If you use method 1, include:
• at box 3.50 any balance on your VAT account that is not paid over to us (that’s, the amount of VAT on your income which exceeds the VAT that you’ve paid on your expenses plus the payment under the Flat Rate Scheme)
• at box 3.63 any balance on your VAT account that you cannot recover from us (that’s, the VAT on your expenses plus the payment under the Flat Rate Scheme minus the VAT on your income)"
My interpretation and shaky understanding of this is .....
box 3.50 entry is ....
The amount of vat we charged at the 20% standard rate on all sales during the time we were registered - ( total vat portion of our expenses + 12% flat rate vat portion of sales ).
At little example for my own reference :
if our sales inc vat was say £1000, then the amount net of vat would be 1000/120*100 = 833.33 So under option 1 i'd be putting 833 as total sales in the sa800. If our expenses came to 150 inc vat i would deduct the vat portion, £25 ( as not tax deductable ) and so the expenses entry net of vat would be £125 in the appropriate SA800 box.
The flat rate scheme vat we are actually going to be paying, is 12% of total sales. so 1000/112*100 = 892.85. So we pay 1000-892.85 = £107.15 vat on flat rate scheme
so the 3 figures to bring to the box 3.50 calculation would be a) 1000-833.33 = 166.67 vat charged at 20% b) £25 ( vat portion of expenses c ) 107.15 (vat amount based on 12% FRS )
So box 3.5 entry = 166.67 - ( 25 + 107.15 ) = £34.52
Box 3.6 entry, again using the example sales and expenses totals above, would be :
( 25+107.15 ) - 166.67 = -£34.52
Appreciate any confirmation im on the right path.