VAT inclusive in the figure

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James2012 replied

17 October 2011, 11:01
Many thanks K2p2 and sockpuppet for your help
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Sockpuppet replied

16 October 2011, 14:27
Originally posted by k2p2 View Post

Not sure about the 8p discrepancy - I guess you could query it with the supplier as the figures should add up, but seems a lot of hassle for 8p.

Just pay what they charge you. Don't work out your own 20%. As they should pass all that VAT onto the tax man you should claim the amount on the invoice.
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mudskipper replied

16 October 2011, 11:00
Originally posted by James2012 View Post

Hi. I have a fairly new business and new to this forum. Most of my VAT invoices will have the price of the product or service, e.g. 500 pounds and then the VAT is added on top, which I pay.

For one company, they have a special deal for new customers for a year contract, of which I am one, and the price is e.g. 500 pounds inclusive of VAT. Their invoice shows, e.g. 416.60 and then VAT at 83.40, to show e.g. total of 500 pounds. Is this okay? Will it be accepted by HMRC? I have however, made a calculation of 416.60 at 20% and it is a slightly different figure of 83.32. Will the HMRC be happy with the lack of consistency? Many thanks.

I'm assuming these are invoices you're putting through as expenses.

Are you registered for VAT?
Are you on the flat rate scheme?

If you're not registered for VAT, or if you're on the flat rate scheme, then it makes no difference - you're not claiming back specific amounts of VAT.

If you're registered, and not on the flat rate scheme, then you can claim back actual VAT paid. I don't think it matters how the figures are presented (inclusive or exclusive) as long as the invoice has a VAT number and VAT is shown as a separate figure.

Not sure about the 8p discrepancy - I guess you could query it with the supplier as the figures should add up, but seems a lot of hassle for 8p.
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James2012 started a topic VAT inclusive in the figure

16 October 2011, 09:41
VAT inclusive in the figure

Hi. I have a fairly new business and new to this forum. Most of my VAT invoices will have the price of the product or service, e.g. 500 pounds and then the VAT is added on top, which I pay.

For one company, they have a special deal for new customers for a year contract, of which I am one, and the price is e.g. 500 pounds inclusive of VAT. Their invoice shows, e.g. 416.60 and then VAT at 83.40, to show e.g. total of 500 pounds. Is this okay? Will it be accepted by HMRC? I have however, made a calculation of 416.60 at 20% and it is a slightly different figure of 83.32. Will the HMRC be happy with the lack of consistency? Many thanks.
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