hi Sir
the company uses the annual accounting scheme.
the total amount of Vat payable for the year ended 31 December 2013 was £10 200.
calculate the monthly payment account that will have been made for the year ended the 31 December 2014?
the answer is 10% of the annual Vat each, but what I dont understand is in the answer the VAT is for 9 months, from April to December.
thanks
Ask the Tutor ACCA TX-UK
monthly payment account Vat
You are forgetting that there is a 10th payment, a balancing payment 2 months after the year end - hence the 10% as there are in total 10 payments.
Sir if I understand clearly, it means on the annual accounting scheme, VAT is always 10 months, and the balancing is for the next year?
There are nine payments on account from month 4 to month 12 of the annual VAT return period based on 10% of the VAT payable for the previous year, with a 10th and balancing payment due with the VAT return 2 months after the end of the annual VAT return period.
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