Reply to: Online VAT Returns

[Waldorf]

I now prefer the online system, I have also signed up to paying by DD so I get a bit longer to pay

My accountant prepares the VAT return and then it is submitted online, simples!

[Moscow Mule]

FFS!!!!.

Why is Interest recieved in the FRS VAT Calculation? Its not vatable sales, or is it?

Because HMRC are twats.

Working out how much VAT you need to pay using your flat rate percentage

You calculate your VAT payable to HMRC by applying your flat rate VAT percentage to your 'flat rate turnover'. If you are still in your first year of VAT registration, remember to reduce your flat rate percentage by one.
Your flat rate turnover is all the supplies your business makes including all:

• VAT inclusive sales for standard rate, zero rate and reduced rate supplies
• sales of exempt supplies, such as rent or lottery commission - you don't have to make any partial exemption calculations
• sales of capital expenditure goods - unless you have previously reclaimed the VAT, in which case they must be accounted for at the standard rate and not the flat rate.
• sales to other EU countries
• bank interest received on a business account
• sales of second-hand goods - but if you sell a lot of these, you may be better off leaving the Flat Rate Scheme and using a margin scheme

Don't include:

• services you've purchased from outside the UK that you've had to reverse charge
• disbursements - costs you pass on to your clients that meet the necessary VAT conditions
• private income, for example income from shares
• the proceeds from the sale of goods you own but which have not been used in your business
• any sales of gold that are covered by the VAT Act, Section 55 - see the link below
• non-business income and any supplies outside the scope of UK VAT
• sales of capital expenditure goods on which you have claimed back the VAT you paid

[AtW]

I use online form now - fairly straightforward (well the numbers come out from Sage system so thats easy), it's the payment that's rather backwards - why send people to some tulipy billpay ffs!

[SueEllen]

Not had a problem so far. Found it less hassle than the paper method.

Until the website locks you out of your account 7 days before the deadline in which you have to submit your return because it decides the password entered is wrong, even though it's exactly the same one as you were given years ago.

You then spend ages getting through to the technical helpline to find that your damn account suddenly works.

[Lumiere]

FFS!!!!.

Why is Interest recieved in the FRS VAT Calculation? Its not vatable sales, or is it?

you can always switch back to the standard scheme if it is critical

[Doggy Styles]

HMRC send me a paper form every quarter, my financial controller fills it in, writes a cheque and sends it off.

At the moment I don't trust HMG websites. I tried to do my P35 online and it seemed to go through OK, but it didn't, so I ended up with a £500 penalty. I just got that rebated so maybe there was a known bug in that system.

[minestrone]

My accountant produces a generated PDF of what I have to write on the paper.

[badger7579]

I just get notified from the accountant of when it’s due and how much (they registered online for me). I was warned that they have had situations in the past where customers have paid via DD and HMRC have screwed up the payments... I prefer to do it myself.

[Scrag Meister]

I submitted my last VAT return about a month ago.

Then my accountant sent me their figures and it was 30p different, I asked why this was and it was because I had not included 13% of the £2.31 interest I have received on my business account balances.

FFS!!!!.

Why is Interest recieved in the FRS VAT Calculation? Its not vatable sales, or is it?

[lilelvis2000]

I let my accountant deal with that. I drop off copies of all the invoices and he sorts it all out. A few days later the money comes in/out of the account. simples!

[EternalOptimist]

I built a nice little vb app that stores all my invoice and exies stuff and produces a lovely screen where the boxes matched the vat form, with all the relevant numbers in.

I'll be miffed if it doesnt match the on line malarky

[FiveTimes]

It seems fine to me. I submitted again yesterday without a hitch paying via BillPay and printed out my proof of payment. The only downside is you don't get a reminder about due dates. I forgot last time and received a 'you've been a naughty company' letter from HMRC.

I get emails saying that my return is due, which I forward to my accountant who then fills in my return

[The_Equalizer]

The instructions on the website for filing are so obfuscated that they are completely useless, I had to google how to do it for flat rate.
Complete tulip of a site!

On the payment side though, the funds are taken automatically from your nominated account now so you shouldn't need a reminder?

I haven't set up the direct debt bit. I guess I should, but I like paying manually. It's a bit like paying cash for most things. You are sort of aware you've spent it. And before anyone mentions it, I know I collect the VAT on behalf of HMRC so I can't really spend it.

[administrator]

Not had a problem so far. Found it less hassle than the paper method.

[VectraMan]

Seems fine to me too. I just wish they'd make the Corporation Tax and annual accounts that simple.