VAT treatment

[Jeremiah@RHJAccountants]

Hi All,

I have earned £3000 VAT on services provided. I have paid £2400 as VAT under flat rate scheme and at additional 1% discount for new business.

My Accountant is treating the VAT gain of £600 to my total turnover. Is this right treatment? Can someone htmuide or provide to HMRC link where I can confirm that my accountant's treatment is correct?

Help will be greatly appreciated.

Many Thanks in advance

Hi That is the correct treatment. But try this link as it has all you need to know about the flat rate scheme

HM Revenue & Customs: Flat Rate Scheme for VAT

[backrubber]

You could try either of the following two products - they both handle the VAT Flat Rate Scheme:

Earnings Tracker - free

My Bookkeeping Manager - £1

[Greg@CapitalCity]

Yep, that is correct. The 'profit' you make from being on the flat rate scheme is taxable through the business. Take a look at;
VAT: flat rate scheme

[stek]

Hi All,

I have earned £3000 VAT on services provided. I have paid £2400 as VAT under flat rate scheme and at additional 1% discount for new business.

My Accountant is treating the VAT gain of £600 to my total turnover. Is this right treatment? Can someone guide or provide to HMRC link where I can confirm that my accountant's treatment is correct?

Help will be greatly appreciated.

Many Thanks in advance

Yes I think that's correct, it's a profit so therefore is liable for CT. Wait for the experts tho...

[maverick18]

Hi All,

I have earned £3000 VAT on services provided. I have paid £2400 as VAT under flat rate scheme and at additional 1% discount for new business.

My Accountant is treating the VAT gain of £600 to my total turnover. Is this right treatment? Can someone guide or provide to HMRC link where I can confirm that my accountant's treatment is correct?

Help will be greatly appreciated.

Many Thanks in advance