Hi,
I am an IT contractor operating my ltd company and as most contractors I have recently switched from the flat rate VAT scheme to standard VAT. While looking for instructions on how to fill in the return I came across a grey area.
There seems to be some confusion regarding "Box 7 - Total value of purchases and all other inputs excluding VAT". From a search that I did, some say you only need to add up any expense subject to VAT and some just to add up everything except salaries.
The expenses that I typically have are:
expenses subject to VAT
expenses non-vatable (e.g. train tickets)
pension contributions
bank charges
mileage
client entertainment
Do you think that all of the above should be included?
If so what about client entertainment which is not an allowable expense hence I don't claim back the VAT?
Any advice will be much appreciated.
I am an IT contractor operating my ltd company and as most contractors I have recently switched from the flat rate VAT scheme to standard VAT. While looking for instructions on how to fill in the return I came across a grey area.
There seems to be some confusion regarding "Box 7 - Total value of purchases and all other inputs excluding VAT". From a search that I did, some say you only need to add up any expense subject to VAT and some just to add up everything except salaries.
The expenses that I typically have are:
expenses subject to VAT
expenses non-vatable (e.g. train tickets)
pension contributions
bank charges
mileage
client entertainment
Do you think that all of the above should be included?
If so what about client entertainment which is not an allowable expense hence I don't claim back the VAT?
Any advice will be much appreciated.
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