The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The Flat Rate Scheme is designed to help small businesses by making it easier to record taxable sales and purchases. Businesses using the scheme normally apply a single percentage to their total flat rate turnover in a VAT period and the result is the VAT payable to HMRC. For more information, see the Overview of the VAT flat rate scheme for small businesses guidance note. Please see the Submitting online VAT returns guidance note for more information on submitting the return.
Filling in the return for the scheme is different from filling in a return using standard accounting, although some boxes are the same.
All of the boxes on the return must be completed. Do not leave any box blank.
There are different methods for electronic returns and paper returns if the business needs to include negative amounts and 'not applicable' boxes.
put a minus sign before the figure for negative amounts
enter '0.00' for 'none' or 'not applicable'
put the figure in brackets ( ) for negative amounts
write 'NONE' where applicable
Businesses using the Flat Rate Scheme do not need to account for the VAT shown on every invoice issued. Instead, the business works out the flat rate turnover for the period covered by the VAT return (see information for Box 6 below for details on the flat rate turnover).
When the VAT turnover for the period has been calculated, the Flat Rate Scheme percentage needs to be applied to the VAT turnover figure. For example, if the VAT inclusive flat rate turnover for the period is £10,000 and the percentage is 10% then the calculation is £10,000 x 10 = £1,000. This figure is entered into Box 1.
If the flat rate percentage changes during a VAT return period, the following calculations will need to be performed for that VAT return
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,250 in 2020/21 and 2019/20) to the spouse or civil partner where neither party is a higher rate or additional rate taxpayer. The legislation calls this the ‘transferable tax allowance’ but the GOV.UK website
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.