Flat Rate Scheme (FRS) and CT600

[kodo]

Chaps/chapesses

I have a question regarding the flat rate scheme and the CT600 when one has a purchase over the 2K threshold...

I have in the past worked out the turnover based on the gross amount less the 14.5 % I actually pay. So the extra gain is incorporated in to the P&L and my CT is paid on it correctly. Read that on this forum..... Cheers....

However, I have bought some kit this year - 1704.01 ex vat, 2044.81 including vat- which I need to account for in the CT600.

My questions are:

Do I simply take the 304.80 VAT off the turnover?
Do I book the addtions in the assest section as the ex vat cost and not the 2044.81?
My outstanding vat liability would normally be £2175 going into my year end so should I roll £1835 (2173-340) along with the rest of my outstanding debts into AC58 : Creditors box....
Or are all of the above wrong?

I'm currently playing "wack-a-mole" with the CT600 boxes ( damn that AC187! ) and I can't help thinking this has something to do with the problem

Many thanks in advance

Kodo

[stek]

What does your accountant say?

[Clare@InTouch]

The net asset value will be shown in your accounts, and will be the value to use on the CT600 for AIA purposes.

Dr Asset purchase (net)
Dr VAT account (VAT)
Cr Bank or cash, however you paid for it (gross)

There's no adjustment at all to turnover.

[Craig at Nixon Williams]

You would claim capital allowances on the net cost of the asset. Capital allowances are then deducted from your trading profits when calculating the tax payable.

You really should appoint an accountant if you are unsure of what you are doing!

[taxguru]

Chaps/chapesses

I have a question regarding the flat rate scheme and the CT600 when one has a purchase over the 2K threshold...

I have in the past worked out the turnover based on the gross amount less the 14.5 % I actually pay. So the extra gain is incorporated in to the P&L and my CT is paid on it correctly. Read that on this forum..... Cheers....

However, I have bought some kit this year - 1704.01 ex vat, 2044.81 including vat- which I need to account for in the CT600.

My questions are:

Do I simply take the 304.80 VAT off the turnover?
Do I book the addtions in the assest section as the ex vat cost and not the 2044.81?
My outstanding vat liability would normally be £2175 going into my year end so should I roll £1835 (2173-340) along with the rest of my outstanding debts into AC58 : Creditors box....
Or are all of the above wrong?

I'm currently playing "wack-a-mole" with the CT600 boxes ( damn that AC187! ) and I can't help thinking this has something to do with the problem

Many thanks in advance

Kodo

You cannot claim input VAT back if you're using the flat rate scheme, except where the input VAT is in respect of capital assets purchased with a VAT inclusive value of £2,000 or more. Even then there are further restrictions.

CT600 should be filled in only after you have first prepared the statutory accounts the preparation of which requires answers to these type of queries.

[kodo]

The net asset value will be shown in your accounts, and will be the value to use on the CT600 for AIA purposes.

Dr Asset purchase (net)
Dr VAT account (VAT)
Cr Bank or cash, however you paid for it (gross)

There's no adjustment at all to turnover.

Thanks Clare....This looks like what I'm after and I think it makes sense now I think about it. I was putting the gross sum in the assets and bank and trying to take off the vat of my liability as well. I still need to sit down with the calcs and get the CT600 form to agree and will post back with the results....

Thanks again

Kodo

[Clare@InTouch]

Welcome

Give me a shout if you want a sanity check before you file.