VAT Accounting

[Maxamus]

Im just curious how people here do they VAT accounting.

I personally am intending on doing it the following way:

- Everytime im paid (which is weekly) i seperate the VAT from the fees (because all i charge for is my time).

- I then take out salary, expenses and divident only from the money from the fees.

- Then, at the end of the 1/4 i total up the VAT recieved, do the calculation and give the tax man his share.

- Then i put my share back in that months profits and apply corp tax to it.


At least this way everything is kept simple.

Is this an acceptable way of doing it?

[Nixon Williams]

I assume that you do not have an accountant? If you do they should be doing this for you.

Remember to correctly account for Flat Rate VAT if you have joined the scheme and that dividends are not deducted from the profits when calculating the corporation tax.

Alan

[Maxamus]

I assume that you do not have an accountant? If you do they should be doing this for you.

Remember to correctly account for Flat Rate VAT if you have joined the scheme and that dividends are not deducted from the profits when calculating the corporation tax.

Alan

ye corp tax is applied and the remiander is dividends

[PAG]

Just make sure you charge CT to your profits and THEN take you dividends.

[Maxamus]

Just make sure you charge CT to your profits and THEN take you dividends.

yep thats what i do at the end of every month.

What i was saying is that come every 1/4 when you hand over VAT to the tax man, my share of that VAT is then included in that months corp tax bill.

[PAG]

That's fine then.