Easy accounting question Easy accounting question
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  1. #1

    Nervous Newbie


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    Default Easy accounting question

    Hi, a very simple query

    I paid £24.98 for some work tools

    £24.98 comes off as an expense to the business and therefore reduction in corporation tax, however on the receipt I have paid £4.16 VAT, is that a further kickback for the business, so I get VAT back as well as the taxable expense deduction

    Thanks

  2. #2

    Respect my authoritah!

    NotAllThere's Avatar
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    Yes it is easy, and it's troubling that you're running a company and don't know. I suggest you start reading the first timer's guide over there------->>>>>>>

    If you're VAT registered, then you get a credit of £4.16 off your VAT return, The expense is £24.98 - £4.16.

    If you're not VAT registered, then the expense is simply £24.98.
    <-2m->

  3. #3

    My post count is Majestic

    northernladuk's Avatar
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    Wow. You do have an accountant don't you?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #4

    Respect my authoritah!

    NotAllThere's Avatar
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    Quote Originally Posted by northernladuk View Post
    Wow. You do have an accountant don't you?
    Back in January http://forums.contractoruk.com/accou...ml#post2354664, he was advised to get one, but based on this question, I guess he doesn't.

    kwaboy - get an accountant. You need one. You are heading for disaster as you clearly do not have the knowledge to do this yourself, and rely on this forum is not good enough.

    For that reason, I'm closing the threads. It's for your own good. If you have other questions that aren't simple ones easily answered by your accountant, feel free to ask.
    <-2m->

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