Announcement Announcement Module
Collapse

Site maintenance, Tuesday 30 September - Wednesday 1 October

We’re carrying out some maintenance work on the AAT discussion forums (forums.aat.org.uk) on Tuesday 30 September 2014, and this is now likely to run into Wednesday 1 October. What this means for you:

- You will still be able to search the site and access all threads as normal.
- New users won’t be able to register for an account.
- You won’t be able to post new threads or reply to existing threads.
- This will have no effect on the AAT website (aat.org.uk).

You should be able to post to the forums as normal (and new users should be able to register) by the evening of Wednesday 1 October.

Apologies for the inconvenience in the meantime, and thanks for your patience.

Stuart Waterman
AAT Online Community Manager
See more
See less
Calculating VAT on weekly / monthly / 1/4ly takings? Page Title Module
Move Remove Collapse
X
Conversation Detail Module
Collapse
  • Filter
  • Time
  • Show
Clear All
new posts

  • Calculating VAT on weekly / monthly / 1/4ly takings?

    Sorry if there is a better forum for this question, I'm studying lvl 2 at the moment but this question doesn't relate to those topics.

    The business I work for currently (a takeaway) is registered for flat rate VAT (11.5% at the moment).
    Our accountant calculated the VAT return based on the full takings for the whole quarter, whereas I calculated it on a weekly basis, inevitably there was a small difference (2 pence).

    This lead me to question what is acceptable practice in this regard.
    If it was calculated on the daily figures it would have been around 30p less than the accountant calculated, I can only imagine how much less it would be if the VAT was calculated on each customer.

    Are all those methods acceptable?

  • #2
    Since it's a quarterly return I would calculate it on a quarterly basis.

    Take the VAT-inclusive (gross) turnover for the quarter, multiply it by 0.115 and viola your Box 1 figure. Flat rate is an easy return I wouldn't complicate it any more.

    Accountancy software would do the same.

    Comment


    • #3
      Thanks.
      I was just wondering about the potential of saving money. Seems odd that we calculate it in such a way that the tax man gets the most possible.

      Comment


      • #4
        HMRC requirements and all, they want you to calculate the VAT returns as a category specified percentage of your turnover for the given VAT return quarter. So, I'm guessing it would flag up on HMRC's system that you aren't calculating it based on the quarterly total, thus submitting illegitimate amounts.

        There are VAT schemes that have different methods of calculation but the requirements are stricter I think. Not sure what type of flat rate your company are on (sounds like cash based?), but take a look at HMRC for more ideas:

        http://www.hmrc.gov.uk/vat/managing/...te-returns.htm
        http://www.hmrc.gov.uk/vat/start/schemes/retail.htm

        I must say their website is an invaluable wealth of information!
        Last edited by Makkusu; 20-02-13, 20:07.

        Comment


        • #5
          Since it's a quarterly return I would calculate it on a quarterly basis.
          Here you can get the latest news about The Walking Dead Season 3 DVD series and cast!

          Comment

          Working...
          X