Help with vat return!!

[Kerrymarie]

i cant afford an accountant so trying to do my vat return myself but im getting confused when it comes to the kgb deal invoices!!

do i basically pay 20% tax on everything i've been paid?
and then claim back all the tax i've spent on products etc?

on my kgb invoice i have paid £111 VAT on their revenue that they have deducted from me, so that means i can claim it back?

but then i still need to pay 20% tax on the total amount they paid me?


if anyone has any great words of simplifying how to do this i would be grateful!!

 

[TracyS]

Just wanted to double check - you are VAT Registered aren't you? If you're not, then you don't need to consider VAT and cannot claim it against tax (as far as I know).

 

[loza789]

hiya,

i work in finance and do vat returns all the time. they are dead easy when you know how

firstly, are you vat registered? if not, you can neither charge or claim back any vat. if you are then its just a simple calculation

the vat you paid out -the vat you've received = vat payable

like i said though this isn't the case if your not vat registered

 

[stephanie_87]

Do you mean VAT return? Or just tax return? I believe you have to turnover £60,000 in order to be VAT registered and have to do a VAT return. For your tax return you have to minus any expenses from your turnover and then your tax owed is 20% of that amount. It's nothing to do with VAT it's just income tax. You don't have to pay tax on any earnings that are put back into the business or for business purposes so that is why you minus them from your turnover to work out your tax owed! As far as KGB deals work I'm not sure because I have never used them. I believe that is how it works, but maybe someone with a little more knowledge will be along shortly

 

[SJK]

You can register yourself at any level for VAT, it's just that at a certain point, which changes it each year, you have to register.

IF you are VAT registered, you need to charge 20% on any sale you make and pay that over. To work this out:

Take your sales figure you've charged people, divide it by 120, times it by 20 and that's the VAT you owe HMRC

(Note: you say KGB have deducted £111 from you so it might be that they have already paid it over for you in which case you don't need to do this on those sales, just everything else.

Then look through all your purchases figures and add up the VAT you've paid (this will only be to VAT registered people). This includes stock, room rental etc.

You then take the VAT from your sales figure, minus the VAT from your purchases figure and that's the money you pay over.

Be warned. It's always more to pay over than you think.

 

[Mike16300]

If you are registered, and if you turnover less than the minimum amount (around £60,000) it's probably not worth self registering, check out if there is a retail scheme for beauticians, there is for hairdressers.

They have so many hairdressers that they know generally what you can claim and so have come up with a fixed rate scheme (I think it's 11.5% for hairdressers) so you don't need to bother going through all your receipts etc.

It's worth getting a quote from a book keeper, you don't need an accountant, they may charge less than you think to sort this out.