+ Reply to Thread
Page 1 of 2 1 2 LastLast
Posts 1 to 10 of 13
  1. #1

    More time posting than coding

    css_jay99's Avatar
    Join Date
    Apr 2006
    Posts
    493
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default VAt Return : Flat Rate Scheme Box 6 value?

    I am getting myself in a bit of a mix up and need some clarification.


    The HMRC Online filing for VAT shows a descriptive text for Box 6 as "Total value of sales and all other outputs excluding any VAT..."


    However this hmrc link suggests otherwise that Box 6 should include VAT

    Which is correct ?

    figures for illustration :-

    Assume industry flat rate percentage of 14.5%
    Assume Sales for Return period is £12000 i.e. (£10000 + £2000 of VAT)

    I would expect Box 1 figure to be £1740 ( i.e. 14.5%*12000)
    I would expect Box 6 figure to be £10000 instead of £12000

    which value is right is box6 ?

    cheers

    css_jay99

  2. #2

    Super poster

    Clare@InTouch's Avatar
    Join Date
    Feb 2010
    Location
    Bournemouth
    Posts
    2,116
    Thanks (Given)
    7
    Thanks (Received)
    39
    Likes (Given)
    69
    Likes (Received)
    91

    Default

    If you're flat rate then it's the gross value that goes in box 6, not the net.

    HMRC just haven't updated their online forms.

  3. #3

    Should post faster

    Nathan SJD Accountancy's Avatar
    Join Date
    Apr 2012
    Location
    Birmingham
    Posts
    104
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    Quote Originally Posted by Clare@InTouch View Post
    If you're flat rate then it's the gross value that goes in box 6, not the net.

    HMRC just haven't updated their online forms.
    I agree with Clare.

    P.S. I don't think HMRC will ever update the VAT Returns for the flat rate box 6 though.

    Seems like Waaaayyy too much effort for them to do that.

  4. #4

    More time posting than coding

    css_jay99's Avatar
    Join Date
    Apr 2006
    Posts
    493
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    Quote Originally Posted by Clare@InTouch View Post
    If you're flat rate then it's the gross value that goes in box 6, not the net.

    HMRC just haven't updated their online forms.
    cheers.

    , I have always been putting into box 6 the net Value(i.e. Exclusive of 20%VAT) for the last 6 years!.

    Though Box 1 figure is correct it's strange they never pulled me up on that !.

    I am assuming I don't need to start making correction cos 6yrs is a long way to go

    css_jay99

  5. #5

    More time posting than coding


    Join Date
    Aug 2011
    Posts
    203
    Thanks (Given)
    0
    Thanks (Received)
    2
    Likes (Given)
    1
    Likes (Received)
    7

    Default

    I agree with the other accountants that have already posted

    and HMRC have not updated their forms for VAT return box 6 now there is a surprise

  6. #6

    Super poster

    Clare@InTouch's Avatar
    Join Date
    Feb 2010
    Location
    Bournemouth
    Posts
    2,116
    Thanks (Given)
    7
    Thanks (Received)
    39
    Likes (Given)
    69
    Likes (Received)
    91

    Default

    Quote Originally Posted by css_jay99 View Post
    cheers.

    , I have always been putting into box 6 the net Value(i.e. Exclusive of 20%VAT) for the last 6 years!.

    Though Box 1 figure is correct it's strange they never pulled me up on that !.

    I am assuming I don't need to start making correction cos 6yrs is a long way to go

    css_jay99
    Keep in mind that when you correct the way you do it next quarter HMRC may well notice and ask you to explain yourself. It should be a simple case of saying "D'oh, sorry - here's my returns and what should have been declared" and that'll be an end to it.

    By putting the gross in box 6 it allows them to easily see Box 6 x 14.5% = box 1. Yours will suddenly show a different percentage, which may raise a flag.

  7. #7
    eek
    eek is offline

    bored now

    eek's Avatar
    Join Date
    Jun 2010
    Location
    :eek:
    Posts
    12,231
    Thanks (Given)
    25
    Thanks (Received)
    171
    Likes (Given)
    44
    Likes (Received)
    288

    Default

    Quote Originally Posted by Clare@InTouch View Post
    Keep in mind that when you correct the way you do it next quarter HMRC may well notice and ask you to explain yourself. It should be a simple case of saying "D'oh, sorry - here's my returns and what should have been declared" and that'll be an end to it.

    By putting the gross in box 6 it allows them to easily see Box 6 x 14.5% = box 1. Yours will suddenly show a different percentage, which may raise a flag.
    It may equally well not raise a flag as I can imagine its such a common error they accept both 14.5% of box 6 and 17.4% of box 6.

    I guess the best approach is to not change the way you fill the form in until told otherwise or you change your agent / accountant.
    Plan C - Erro.rs Javascript Error reporting because errors do occur.

  8. #8

    Super poster

    Clare@InTouch's Avatar
    Join Date
    Feb 2010
    Location
    Bournemouth
    Posts
    2,116
    Thanks (Given)
    7
    Thanks (Received)
    39
    Likes (Given)
    69
    Likes (Received)
    91

    Default

    Quote Originally Posted by eek View Post
    It may equally well not raise a flag as I can imagine its such a common error they accept both 14.5% of box 6 and 17.4% of box 6.

    I guess the best approach is to not change the way you fill the form in until told otherwise or you change your agent / accountant.
    Agreed - I mention it only because I've seen it happen.

    I'd still recommend you change the way you do it to the proper way though, otherwise an innocent error becomes a deliberate one. If you have nothing to hide, then there's no fear involved in them asking what the score is anyway.

  9. #9

    More time posting than coding

    css_jay99's Avatar
    Join Date
    Apr 2006
    Posts
    493
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    0

    Default

    Quote Originally Posted by Clare@InTouch View Post
    By putting the gross in box 6 it allows them to easily see Box 6 x 14.5% = box 1. Yours will suddenly show a different percentage, which may raise a flag.
    It does not appear they have been looking for the last 6years because since I have been incorrectly using net sales figure in box6, i would have thought they should have been writing me a letter that I am paying too much VAT since my Box 6 x 14.5% was always less than my Box1 figure

  10. #10

    Godlike

    SueEllen's Avatar
    Join Date
    Nov 2005
    Location
    in the Park
    Posts
    9,451
    Thanks (Given)
    11
    Thanks (Received)
    22
    Likes (Given)
    61
    Likes (Received)
    90

    Default

    Quote Originally Posted by Clare@InTouch View Post

    By putting the gross in box 6 it allows them to easily see Box 6 x 14.5% = box 1. Yours will suddenly show a different percentage, which may raise a flag.
    Still waiting for my inspection letter.....

    Mind you I did sign up for a VAT course and went immediately after I realised I had done it wrong.
    "Youíre just a bad memory who doesnít know when to go away" JR

+ Reply to Thread
Page 1 of 2 1 2 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.