CT600 FRS VAT Surplus

[dimazigel]

Hi guys
I've got pretty much stupid question regarding where I should put FRS VAT Surplus.

I think there are two options:
1. Add Surplus to Turnover and put whole figure into the field CP7 (Turnover/Sales)
2. Put the surplus into the field CP43 (Interested received)

So the question is how you fill in the CT600 in this case?

Thanks in advance

[DaveB]

Hi guys
I've got pretty much stupid question regarding where I should put FRS VAT Surplus.

I think there are two options:
1. Add Surplus to Turnover and put whole figure into the field CP7 (Turnover/Sales)
2. Put the surplus into the field CP43 (Interested received)

So the question is how you fill in the CT600 in this case?

Thanks in advance

It's part of your turnover.

[dimazigel]

It's part of your turnover.

How do you know that? These money are gotten not from the Sales directly. I've got them due to a legal loophole.

In the form it is said:

Bank, building society or other interest, and profits and gains from
non-trading loan relationships:

[northernladuk]

How do you know that? These money are gotten not from the Sales directly. I've got them due to a legal loophole.

In the form it is said:

Probably because this has been asked before....

http://forums.contractoruk.com/accou...-accounts.html

A simple search would have found you the answer...

https://www.google.co.uk/search?q=va...w=1280&bih=939

[Jessica@WhiteFieldTax]

By convention it goes in turnover.

However not just the surplus in turnover. Prepare all figures - turnover and expenses - gross of vat then either (a) deduct the whole flat rate payments from turnover or (b) show the flat rate payments as a separate expense. (a) is the usual treatment. Either way every other item is gross of vat, not net.

[Martin at NixonWilliams]

It should be included in the turnover section.

The flat rate scheme is not a loophole. It is a scheme introduced to simplify accounting for smaller business and, in most cases, saves you a lot of money as you seem to have found out

I hope this helps.

Martin

[rak25]

Having same trouble - Please help . VAT surplus C43 or not CT600 ?

Dear AlL,
I am also struck the same place and i have 1 week left for last date - filing my ct600 returns, Not sure where the GBP1500 VAT Surplus amount ( Other operating earning) should go - 1. CT600 computation box C43 or 2.turnover box . please advice Any early response will be great help.

Many Thanks in advance.
Kind Regards,
raky

[QUOTE=Martin at NixonWilliams;1762608]

How do you know that? These money are gotten not from the Sales directly. I've got them due to a legal loophole.

It should be included in the turnover section.

The flat rate scheme is not a loophole. It is a scheme introduced to simplify accounting for smaller business and, in most cases, saves you a lot of money as you seem to have found out

I hope this helps.

Martin

[Martin at NixonWilliams]

It should be included in the turnover section in box 1, make sure it is also included in the profit figure in box 3. If you have an accountant they should be doing this for you.

[DirtyDog]

Also, I'm not sure what you have done with the quote above but that is not all mine!

It's a quote of your post number 6, where you didn't close the original quote.

So it is all yours

[TheCyclingProgrammer]

How do you know that? These money are gotten not from the Sales directly. I've got them due to a legal loophole.

It's not a loophole. It's surplus income derived from your discounted flat-rate VAT percentage; it's intended to cover small amounts of input VAT that you would normally recover on the standard VAT scheme but cannot on the FRS (hence the FRS is designed for businesses with minimal input VAT).

Ergo, the FRS surplus is turnover. If you add up all of the unrecoverable input VAT you've incurred throughout the year and deduct it from your FRS surplus, you'll also know how profitable being on the FRS has been for you. For small businesses like us, there should be a decent profit. If there is a loss, you shouldn't be on the FRS.

EDIT: just realised how old the original post was. Doh.