Anonymous
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VAT query

Am I out of pocket?

Didn't find your answer?

I charge a customer £1000 plus vat and he then charges us £1000 but no vat as not vat registered.  Therefore i must be out of pocket by £200 as i have to pay the vat to HMRC - my accountant says not but i dont see how I cant be.

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RLI
By lionofludesch
25th Nov 2019 15:34

He gives you £1200.

You give him £1000.

You give the VATman the other £200.

Why do you think you're out of pocket ?

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Psycho
By Wilson Philips
25th Nov 2019 15:49

Simple arithmetic ...

1,000 + 200 - 1.000 - 200 = 0

Sorry - got distracted so overlapped with response above.

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By the_drookit_dug
25th Nov 2019 15:50

Have you undertaken a barter transaction and forgotten to ask for payment of the "+VAT" bit?

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By Cloudcounter
25th Nov 2019 15:56

It's your customer that is out of pocket as he has to fork out the £200 VAT

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By JDBENJAMIN
26th Nov 2019 12:37

Hi Sharon! Why are you asking the same question anonymously?

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Replying to JDBENJAMIN:
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By Sharon Street
26th Nov 2019 13:29

I am new to the site, first post - was playing around with my profile!

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