VAT Flat Rate and Bank Interest
Has there been any update on this one ? VAT guidance issued today suggests not...
6.2 What must I include in my flat rate turnover?
Your flat rate turnover is all the supplies your business makes, including VAT. This means all of the following:
the VAT inclusive sales and takings for standard rate, zero rate and reduced rate supplies
the value of exempt income, such as any rent, bank interest on a business account or lottery commission. These examples are not exhaustive and you can find out more about exempt income in Notice 700 The VAT Guide.
supplies of capital expenditure goods, unless they are supplies on which VAT has to be calculated outside the flat rate scheme in accordance with paragraph 15.9 and
the value of any despatches to other Member States of the EC if you are making intra EC supplies. For details see Notice 725 The Single Market.
Note: As exempt and zero rate supplies are included in your flat rate turnover you apply the flat rate percentage to the exempt and zero rate turnover. You may pay more VAT by being on the scheme if these supplies are a larger proportion of your business turnover than the average for your trade sector.
Cheers
Robot
Originally posted by Clare@InTouch
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Has there been any update on this one ? VAT guidance issued today suggests not...
6.2 What must I include in my flat rate turnover?
Your flat rate turnover is all the supplies your business makes, including VAT. This means all of the following:
the VAT inclusive sales and takings for standard rate, zero rate and reduced rate supplies
the value of exempt income, such as any rent, bank interest on a business account or lottery commission. These examples are not exhaustive and you can find out more about exempt income in Notice 700 The VAT Guide.
supplies of capital expenditure goods, unless they are supplies on which VAT has to be calculated outside the flat rate scheme in accordance with paragraph 15.9 and
the value of any despatches to other Member States of the EC if you are making intra EC supplies. For details see Notice 725 The Single Market.
Note: As exempt and zero rate supplies are included in your flat rate turnover you apply the flat rate percentage to the exempt and zero rate turnover. You may pay more VAT by being on the scheme if these supplies are a larger proportion of your business turnover than the average for your trade sector.
Cheers
Robot
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