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I dont understand how to calculate how many payment on account of vat require to pay. For annual vat return period.
Could u help me w the the rule here .
Also, When and why we multiply it by 10%
Before you get an answer from the tutor…..
P.O.A= Vat liability for previous year * 10 %
you will be required to make 9 payments beginning from April to December (9 months) hence
Total P.O.A= Vat liability for previous year * 10 % * 9
Vat payment for current year = Vat liability for current year minus total P.O.A
this payment is made along with one Vat return within two months of your year end!……Also, When and why we multiply it by 10%…..HMRC rule I think
For the annual accounting scheme there are as stated above by mosaso and in the OT course notes, 9 POA and a balancing payment – 10 payments in total which explains why each POA is 10% of the previous year’s liability.
@mosaso said:
Before you get an answer from the tutor…..P.O.A= Vat liability for previous year * 10 %
you will be required to make 9 payments beginning from April to December (9 months) hence
Total P.O.A= Vat liability for previous year * 10 % * 9
Vat payment for current year = Vat liability for current year minus total P.O.A
this payment is made along with one Vat return within two months of your year end!……Also, When and why we multiply it by 10%…..HMRC rule I think
V much thanks for this clear clarification i was so so confused regarding this matter plz could u give more inform about this one vat return and also balancing payment.
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