You will need to include following:
your total sales and purchases
the amount of VAT you owe
the amount of VAT you can reclaim
the amount of VAT you’re owed from HM Revenue and Customs (HMRC) (if you are reclaiming VAT on business expenses)
You must include the VAT on the full value of what you sell, even if you:
receive goods or services instead of money - for example if you take something in part-exchange or barter trade.
have not charged any VAT to the customer - whatever price you charge is treated as including VAT
For further guidance contact us at 0161 224 3510 or info@aminandcoaccountants.co.uk at Amin & Co Accountants.
If you’re registered for VAT in Northern Ireland, you must include EU sales on your VAT Return and complete an EC Sales List.
HMRC can charge you a penalty of up to 100% of any tax under-stated or over-claimed if you send an inaccurate return.
Accounting for import VAT
You can account for import VAT on your VAT Return by using "postponed VAT accounting". This allows you to declare import VAT and reclaim it as a business expense on the same VAT Return.
Using estimated figures
Ask HMRC for permission to use estimated figures. You will need a good reason why you cannot give accurate figures on your VAT Return.
If you are allowed, you will not be charged a penalty unless you miss the deadline or make a careless or deliberate error. You will normally have to give the correct figures in your next VAT Return.
Claiming relief on bad debts
If a customer does not pay you for goods or services, you can write off the invoice as a "bad debt". If you’re in this situation, you might be able to claim relief from VAT.
To qualify for the relief:
the debt must be older than 6 months
you must submit your claim within 4 years and 6 months of the date the payment was due or the date of supply (whichever was later)
you must not have sold the debt on
you must not have charged more than the normal price for the item
You need to keep records about the debt. Submit your claim for a refund in your VAT Return.
Comments