# Vat for a small shop

Registered Posts: 41 Regular contributor ⭐
I want to take on new client. They have a shop. There purchases include some vat, but on sales ( they use a simple cash till) vat is not recorded. For example, they have only sales figure for a mont, and they do not know how many products were sold, which had vat on them. How do i do vat return? How can i arrive at sales figure and arrive at vat on sales?
Thanks

• Registered Posts: 1,693 Beyond epic contributor 🧙‍♂️
I would say to look at the apportionment schemes, probably scheme 1.
Pm me if you want assistance once you have read the vat notice, I've just done one myself for the first time. We can compare answers
• Registered Posts: 57 Regular contributor ⭐
Does the cash till have department buttons. If so designate one for VAT items only then you can calculate vat due from that button's total.
• Registered Posts: 41 Regular contributor ⭐
Hi,
I have read vat notice. I think scheme 1 will be the best option for me.
As far as i understood it works like this:
If my client make purchases in three months for £40,000, only of which 4000are vat products. That is 10% of purcahes are with vat. ( because most of items is food, which is not vat taxable).
So vat paid on purchases would be 4000*15/115=521.
Then if sales were 70,000, so i take 10% of 70,000, which makes it 7,000 and calculate vat due, which is 7000*15/115=913???

913-521=410 vat payable???

Am I near the correct way of doing it?
thanks a lot
• Registered Posts: 1,693 Beyond epic contributor 🧙‍♂️
That's the way I did it so if anyone comes back and corrects us, that's me in the doo doo for about the last 3 years...lol
• Registered Posts: 711 Epic contributor 🐘
Hi Lina

Dont forget to adjust your calculation to allow for items that are purchased at zero but are held out/sold at standard rated.

This happened to me with a pet shop, food came in bulk at zero, proprietor then bagged up into small bags to sell and that had to be sold at standard rate.

VAT man would expect t see a list of such items if they visit

Poodle
• Registered Posts: 41 Regular contributor ⭐
Hi,