Hi all. Humour me, this is going to seem obvious to many of you, but I just want to clarify something in my mind.
Let's say as an example, I bill £1000, plus the VAT so the total amount billed is £1175.
I think the VAT I pay back to HMRC is at 12% (my company is in first year of IT contracting). Should the amount payable be 12% of £1000, or 12% of £1175?
The reason I ask is that I assume that it should be the former, whereas my accounts seem to show that I have paid the latter!
Thanks...
Let's say as an example, I bill £1000, plus the VAT so the total amount billed is £1175.
I think the VAT I pay back to HMRC is at 12% (my company is in first year of IT contracting). Should the amount payable be 12% of £1000, or 12% of £1175?
The reason I ask is that I assume that it should be the former, whereas my accounts seem to show that I have paid the latter!
Thanks...
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