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What should my sales revenue be?

Commissions

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My business model is to place services and charge a commission.

For example

I would buy in services at £100, charge £20 commission and pay £100 to my service provider. Should my sales be recognised as £20, or £120? Do HMRC have any preference for VAT purposes?

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By AW71
20th Jun 2019 16:03

What does your professional advisor say?

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By AW71
20th Jun 2019 16:06
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20th Jun 2019 16:18

If you run your business based on HMRC's preferences, you will soon find yourself bankrupt.

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20th Jun 2019 16:36

Not sure mate, sorry

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By AW71
20th Jun 2019 16:51

Pi recurring

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20th Jun 2019 18:11

It's not clear from your question who is supplying what to whom, which is the key to the issue. And, indeed, 93.7% of all VAT related questions.

Furthermore, you need to research and understand the difference between a "commission" and a "profit margin".

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By frankfx
20th Jun 2019 20:44

my back of envelope says 97.4%

but there are some wild assumptions , which is the norm.

could round up to 100%

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to frankfx
21st Jun 2019 11:59

frankfx wrote:

my back of envelope says 97.4%

You worked it out on an envelope ?

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21st Jun 2019 09:11

What kind of services, what kind of supplier, what kind of customer, what agreements are in place between which parties?

Your question is no different to asking "I'm buying something, is there VAT on it?"

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By frankfx
21st Jun 2019 12:43

Old supply of unused brown HMRC VAT Return , pre paperless office.

In this part of Auchtermuchty an envelope has many uses.

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to frankfx
21st Jun 2019 13:01

frankfx wrote:

Old supply of unused brown HMRC VAT Return , pre paperless office.

In this part of Auchtermuchty an envelope has many uses.

Not sure you can count as paperless if you still have envelopes.

Still, the point I was making was - why did you work it out ?

74.7% of quoted statistics are made up on the spot.

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21st Jun 2019 12:57

Think I might have found an answer for you. Only disclose the £20 as sales, save yourself £17 of VAT. Don't think HMRC will mind.

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to Accountingmadman
21st Jun 2019 13:03

Accountingmadman wrote:

Think I might have found an answer for you. Only disclose the £20 as sales, save yourself £17 of VAT. Don't think HMRC will mind.

Jaysus !!

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