Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚

Vat for a small shop

LinaLina Feels At HomeRegistered Posts: 41
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?


  • farmergilesfarmergiles Font Of All Knowledge Registered Posts: 1,693
    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
  • pinksponkpinksponk Feels At Home Registered Posts: 57
    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.
  • LinaLina Feels At Home Registered Posts: 41
    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
  • farmergilesfarmergiles Font Of All Knowledge Registered Posts: 1,693
    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
  • PoodlePoodle Experienced Mentor Registered Posts: 711
    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

  • LinaLina Feels At Home Registered Posts: 41
    Thanks everyone for answers.
    I will call vat helpline to get more info on this one.It is not clear to me still.
    What about the software? Do i have to do all the calculations manually? I am using Qiuck Books, but if i enter evth in to the system, that is fien with purchases, but how can I enter sales? Or I just do the calculation for sales manually and then enter into the system?
    How much to charge client per year with a turnover of 400,000. ( vat returns, annual accounts):huh: They have so many invoices for a month!!!

Sign In or Register to comment.