monthly payment account Vat

This topic has 3 replies, 2 voices, and was last updated 11 years ago by Tax Tutor.

Viewing 4 posts - 1 through 4 (of 4 total)

Author

Posts
October 20, 2014 at 11:19 am #205094
josy87
Member
- Topics: 172
- Replies: 215
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
October 20, 2014 at 7:50 pm #205162
Tax Tutor
Member
- Topics: 2
- Replies: 3960
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.
October 26, 2014 at 10:13 am #206061
josy87
Member
- Topics: 172
- Replies: 215
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?
October 27, 2014 at 7:44 pm #206295
Tax Tutor
Member
- Topics: 2
- Replies: 3960
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.
Author

Posts

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.