Overpaid Corp Tax

[Bumfluff]

On end of year accounts would the total revenue figure exclude VAT at the flat rate level if your on it or 17.5% regardless ?

So lets say your turnover is £100k including VAT at 17.5% but your on the flat rate scheme so you pay 13% would the total revenue figure stated be £87k or £82.5k ?

£100k - £13k (13% flat rate Vat) = £87k
or
£100k - £17.5 (17.5k) % VAT = £82.5k

Not sure if the total revenue figure in my accounts is overstated or not.

[max]

On end of year accounts would the total revenue figure exclude VAT at the flat rate level if your on it or 17.5% regardless ?

So lets say your turnover is £100k including VAT at 17.5% but your on the flat rate scheme so you pay 13% would the total revenue figure stated be £87k or £82.5k ?

£100k - £13k (13% flat rate Vat) = £87k
or
£100k - £17.5 (17.5k) % VAT = £82.5k

Not sure if the total revenue figure in my accounts is overstated or not.

Total revenue/turnover would be your total income not including the VAT. Although I'm sure they'd appreciate getting 22% corporate tax on the VAT you already collected for them.

[Bumfluff]

Total revenue/turnover would be your total income not including the VAT. Although I'm sure they'd appreciate getting 22% corporate tax on the VAT you already collected for them.

Thanks, I understand its total rev - VAT but if your on the flat rate which I am will it be total rev - 13% or total rev - 17.5% ?

My turnover looks overstated if its 17.5% but near enough correct if its 13%. In effect I make some profit off the flat rate scheme so can understand paying CT on it.

[NickFitz]

Shouldn't your accountant deal with this? Crap like this is what you pay them for.

[Bomber]

If your on the flat rate scheme you pay 13% of your total income including VAT so:

£100k + 17.5% VAT (17,500) = £117,500 Total
£117,500 - 13% FRS (15,275) = £102,225k turnover

so 87K in your example.

[expat]

If your on the flat rate scheme you pay 13% of your total income including VAT so:

£100k + 17.5% VAT (17,500) = £117,500 Total
£117,500 - 13% FRS (15,275) = £102,225k turnover

so 87K in your example.

The OP said "So lets say your turnover is £100k including VAT at 17.5%".

So,
£100k including 17.5% VAT = £100,000 Total
£100,000 - 13% FRS (13,000) = £87,000 turnover

[Emigre]

On end of year accounts would the total revenue figure exclude VAT at the flat rate level if your on it or 17.5% regardless ?

So lets say your turnover is £100k including VAT at 17.5% but your on the flat rate scheme so you pay 13% would the total revenue figure stated be £87k or £82.5k ?

£100k - £13k (13% flat rate Vat) = £87k
or
£100k - £17.5 (17.5k) % VAT = £82.5k

Not sure if the total revenue figure in my accounts is overstated or not.

The FRS, being calculated on gross figures, is odd in that just about all other calculations are based on net figures; hence all this confusion.

Accounting turnover in your example above is £85,106. ie £85,106 + VAT at 17.5% = £100,000. FRS at 13% is correctly shown.

[Bumfluff]

Im waiting for accountant to get back to me but to be honest I think it may be a screw up on there side, this is based on the fact it took nearly 7 iterations to get the frigging accounts right in the first place, and my accounts are not complex at all. Does beg the question 'what do I pay them for'.

[QwertyBerty]

Im waiting for accountant to get back to me but to be honest I think it may be a screw up on there side, this is based on the fact it took nearly 7 iterations to get the frigging accounts right in the first place, and my accounts are not complex at all. Does beg the question 'what do I pay them for'.

Good question. Bite the bullet, buy a couple of books and do your own accounts. It's easy once you get into it.

QB.

[ASB]

On end of year accounts would the total revenue figure exclude VAT at the flat rate level if your on it or 17.5% regardless ?

So lets say your turnover is £100k including VAT at 17.5% but your on the flat rate scheme so you pay 13% would the total revenue figure stated be £87k or £82.5k ?

£100k - £13k (13% flat rate Vat) = £87k
or
£100k - £17.5 (17.5k) % VAT = £82.5k

Not sure if the total revenue figure in my accounts is overstated or not.

I think the answer may be more complex than you expect. Here's my take by example.

You have sales transactions for 85106 + vat @ 17.5% = 14984.

So, you have a P+L broadly of:-

Turnover
Consulting income 85106
Other income (profit of fixed rate scheme) 1984

Total Income 87000

However, it is complicated by the fact that your annual accounts need to be produced on an accrual basis, you presumably account for vat on a cash received basis. At the point the invoice is raised the vat liability is in fact still 14,984. Whether at this point you can reduce this to 13,000 - in the accounts by journalising the 1984 from the liability to income is unknown.

In my opinion at the point of invoice the liability is still 14984. It is only when this is settled at the next vat quarter that it is magically discounted to 13,000. Thus generating the 1984 other income.

I am sure there is an accounting standard on it (it may let you do either, provided you take a consistent approach)