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VAt Return : Flat Rate Scheme Box 6 value?

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    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
    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.
    ContractorUK Best Forum Adviser 2013

    Comment


      #3
      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.

      Comment


        #4
        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

        Comment


          #5
          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

          Comment


            #6
            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.
            ContractorUK Best Forum Adviser 2013

            Comment


              #7
              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.
              merely at clientco for the entertainment

              Comment


                #8
                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.
                ContractorUK Best Forum Adviser 2013

                Comment


                  #9
                  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

                  Comment


                    #10
                    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.
                    "You’re just a bad memory who doesn’t know when to go away" JR

                    Comment

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