Getting my VAT sums right

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prozak replied

10 January 2012, 14:21
Originally posted by platforminc View Post

Hi All,

I got a letter from HMRC around xmas, but somehow misplaced it but I can remember what it said, It did state that for the period ending 31st Oct 2011 they reckon my VAT bill should be £428 or so, however I have collected around £5,000 for the 3 months leading up till 31st Oct 2011. I am using the flar rate scheme and work in IT, I understand its 13.5 or so. Can I please doublecheck that the amount due would be 5k * 13.5 I heard someone say I get a discount in the first year, I'm a newbie contractor.

Thanks in advance.

Read what Clare said.

Register to do this stuff online.

Give HMRC a call and get some advice?
Leave a comment:
northernladuk replied

9 January 2012, 18:13
Would now not be a good time to get an accountant then?
Leave a comment:
Clare@InTouch replied

9 January 2012, 17:53
It's usually based on what you invoice, not what you collect. So £5,000 x 13.5% = £675. That's assuming the £5,000 is your gross invoice value and you're a 14.5% category.

If you've got a bill from HMRC, and it's yellow, it's more likely that you've not filed a return and this is HMRC issuing a determination (a guess) on what they think you owe. That's why you can't reconcile it with your records.

Did you file a return and pay the VAT owed (by the due date)?
Leave a comment:
platforminc started a topic Getting my VAT sums right

9 January 2012, 17:50
Getting my VAT sums right

Hi All,

I got a letter from HMRC around xmas, but somehow misplaced it but I can remember what it said, It did state that for the period ending 31st Oct 2011 they reckon my VAT bill should be £428 or so, however I have collected around £5,000 for the 3 months leading up till 31st Oct 2011. I am using the flar rate scheme and work in IT, I understand its 13.5 or so. Can I please doublecheck that the amount due would be 5k * 13.5 I heard someone say I get a discount in the first year, I'm a newbie contractor.

Thanks in advance.
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