4 July 2013 | Uncategorized
If you use the flat rate cash-based turnover scheme you may still be due a VAT claim even though you will not have paid a VAT contribution to HMRC. Section 14 of the VAT Notice 733 spells it out:
The following is extracted from HMRCs notice:
If you use the cash turnover method of accounting you may be eligible for bad debt relief if:
If you meet all these conditions, your claim will be for the difference between the VAT you charged to your customer and the amount you would have declared to us had you been paid. As with businesses that use the basic and retailer’s methods, this is because your flat rate takes account of input tax that you would otherwise have been entitled to, if you had been paid by your customer.
You can make the adjustment as follows:
If you require further information on how this will affect you, then please contact Angus Nicolson.
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