Filling out VAT return

[riverwillow]

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Could someone help me fill out a VAT return?

If we assume for the quarter:

• Adwords expenditure was £10,000
• Advertising commissions received from UK networks were £20,000

Which boxes would I fill out on a VAT return, with what amounts (and how would I calculate those amounts)?

How much VAT would I owe?

Thanks in advance for anyone kind enough to help

[hrbs]

Could someone help me fill out a VAT return?

If we assume for the quarter:

• Adwords expenditure was £10,000
• Advertising commissions received from UK networks were £20,000

Which boxes would I fill out on a VAT return, with what amounts (and how would I calculate those amounts)?

How much VAT would I owe?

Thanks in advance for anyone kind enough to help

Hi

The VAT return entries based on your figures (commissions assumed net of VAT) and also on the basis that you are not on the flat rate scheme would be:

Box 1 : £5,250.00 [17.5% x (20,000 + 10,000) ]
Box 2 : £0
Box 3 : £5,250.00
Box 4: £1,750.00 [17.5% x 10,000]
Box 5: £3,500.00 [payable to HMRC]

Box 6: £30,000
Box 7: £10,000

Box 8: £0
Box 9: £0

Note: You may also have other items that will need including such as additional reverse charge services (affects box 1, 3, 4, 5, 6, 7), UK purchases (affects box 4, 5, 7) , non-UK sales (affects box 6) etc.

A shortlink to the HMRC guide (700/12) is http://hrbs.biz/id?406 .

Regards

Keith
HRBS.biz

[riverwillow]

Hey,

Thanks for your reply!

I have to say, I'm confused.

From those figures I would owe £3,500 to HMRC, right?

A contrived example I know, but with the current threshold at £70,000 for VAT registration, isn't it the case that if your turnover was £69,999.99 you would have nothing to pay but as soon as you earn £70,000 you suddenly have this large sum you owe?

[riverwillow]

Actually, I think I get it.

Since I'm not currently VAT registered, I've been receiving payments with no VAT added on.

Once I'm VAT registered, I'll provide the affiliate networks with my VAT number and will receive payments including VAT.

I think that's right at least

Say I went over the threshold for the first time this month, and register in time according to HMRC, what would be the first period I have to fill out a VAT return for?

Would I have to foot the bill while I wait for backdated VAT to be paid by the affiliate networks?

I wish I'd just kept my turnover below the threshold now

[ian]

Simple Q&A on VAT When to register for VAT | Business Link

[IntroSites]

Get an accountant, im sure your time would be better spent on your Adwords campaigns

[mejorantes]

Would I have to foot the bill while I wait for backdated VAT to be paid by the affiliate networks?

Most of the networks allow you to claim the backdated VAT to the date you became VAT registered.