Can anyone enlighten me please

[Wanderer]

Can anyone decipher this?? What is the purchases amount for. As of yet I have not bought anything for the company. Why do I pay this VAT return - anyone know?

I asked the accountant about the purchases and he said "don't worry about that". He also said I pay this from my company bank account...

You invoice the client (say) £10,000 and if you are VAT registered then you add 20% VAT of £2,000 to that. If you are not VAT registered then your invoice would only be £10,000 not £12000 so there's no loss to being VAT registered. In fact it can be to your advantage because if you buy a new computer for £1,000 plus VAT = £1,200 inc VAT then you account for this in box 7 and get to reclaim the £200 VAT on the purchase so you owe the VAT man £1,800

This £1299.71 purchases amount would be the total value of purchases ex VAT, so you must have spent £1299.71 + VAT since you formed the company and you must have VAT invoices for that amount which allows you to reclaim the VAT. Ask your accountant (again) what is the purchases amount for?. Where has your company spent 1299.71?

Don't be fobbed off, you are the director of the company so it's your responsibility to double check what the accountant does.

Also get the accountant to explain the VAT Flat Rate Scheme and figure out if you should be on it or not.

[northernladuk]

I've never used a brolly but I imagine you could get through without picking up any of the Ltd. stuff. But I agree that when you set up, you want to understand your responsibilities as a Company Director pretty quickly. We're not allowed to sign the back of passport photos for nothing, you know!

LOL I love it. You are on a roll at the moment OG.

[LisaContractorUmbrella]

Unless I am missing something - it may just be that the OP's purchases are zero rated for VAT purposes in which case the accountant has prepared the return correctly