DIY accounting and payroll
software limited company formation UK
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QUARTERLY VALUE ADDED TAX RETURN Company Accounts package is for limited liability companies that can be used by both vat registered and non vat registered business and those businesses using a Vat Flat Rate Scheme. Vat Flat Rate scheme simply alter the vat flat rate on the first sales sheet to the flat rate percentage and the vat flat rate scheme is then fully operational and automated as explained in the company accounts user guide that accompanies all packages purchased. There is currently a 1% vat rate reduction when companies register for vat flat rate scheme.
CHANGE REQUIRED IF VAT FLAT RATE REGISTERED Businesses with a turnover including vat of under £150,000 p.a. may adopt a flat rate vat scheme the rate varying according to the industry when businesses register for vat. When a flat rate scheme is adopted invoice sales including the 17.5% standard vat rate. Also change the vat calculation throughout the accounting system by entering the vat flat rate just once as follows: Go to Sales Spreadsheet Column H Row 4 Cell H4 (this cell is shaded light blue) Enter the FLAT RATE PERCENTAGE This entry to the sales spreadsheets are then automatically carried forward to the remaining months effectively changing the collection of vat from the standard rate to the Flat Rate percentage. In addition it shows sales turnover net of the flat rate percentage and accounts for all purchases including vat input as a business expense on the aut5omated vat return..
HM REVENUE & CUSTOMS QUARTERLY VAT RETURNS AUTOMATED No Entries required to the vat records– fully automated quarterly vat returns ready for transferring figures direct to the quarterly vat tax return. The quarterly vat return shown below is the actual vat spreadsheet that is fully automated within the financial accounting software enabling the potential vat liability to be viewed in the vat records at any time during the vat quarter.
The vat threshold at which small businesses must seek a vat registration usually changes in the budget each March. Currently, for the financial year from 6 April 2008, the vat threshold is £67,000 p.a. Businesses should note the legal position regarding vat that under the customs rules any business whose sales exceed the vat threshold increased from 1st April 2008 to £67,000 p.a., are liable to pay vat at 17.5% on their sales turnover whether they register with HM Revenue & Customs for vat or not.
DIY Accounting "Value Added Tax, Vat threshold, returns and registration" |
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DIY Accounting
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