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Post Info TOPIC: Revenue figure when using Flat Rate VAT
SecondTrader


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Revenue figure when using Flat Rate VAT
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My understanding is the Revenue figure excludes VAT. I have a customer on the VAT Flat Rate Scheme paying 10%. 

 

So they invoice a customer showing a cost of £100 net plus 20% VAT giving a total cost to the customer of £120. Under the Flat Rate Scheme the VAT liability is 10% of the £120 = £12. 

 

So is the Revenue figure the £100 or £108 (£120 - £12 Flat Rate VAT)?

 

Many thanks.



-- Edited by SecondTrader on Monday 3rd of July 2023 10:27:24 PM

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Artois


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Their taxable turnover will be the gross amount including VAT minus any VAT paid so in this case £108 will be included on the profit and loss

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Doug

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SecondTrader


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Thanks, much appreciated 



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integraoutsourcing


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The Revenue figure typically excludes VAT. If a customer on the VAT Flat Rate Scheme pays 10%, the Revenue figure would be £100, excluding VAT. The VAT liability under the Flat Rate Scheme is calculated based on the total cost to the customer, including VAT. Therefore, the VAT amount of £12 should not be deducted from the Revenue figure.


Website: www.globalintegra.co.uk/

Contact us: +44 (0)20 7993 2949

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SecondTrader


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confuse are you sure.... this contradicts previous answer



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Artois


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Section 7.8 says "Accounts for businesses using the scheme will be prepared using gross receipts less the flat rate percentage"

So in this case £120.00 minus the 10% = £108.00 

https://www.gov.uk/guidance/flat-rate-scheme-for-small-businesses-vat-notice-733--2



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice
SecondTrader


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Thanks Doug



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Leger


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Hi Doug

I kind of see where Integra is coming from

I record it as £100 sales £20 vat

Pay HMRC £12 and journal £8 to income as "profit" on the VAT.

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Artois


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Leger wrote:

Hi Doug

I kind of see where Integra is coming from

I record it as £100 sales £20 vat

Pay HMRC £12 and journal £8 to income as "profit" on the VAT.

 Hi John

Which means £108 is taxable, which is what I said



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice
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