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Candy’s figures for sales are exclusive of value added tax.
Candy should account for output tax at 20/120 of the value of sales from the date that she should have been registered from.
Why is this statement true.
Also the date she should have been registered from refers to the date of notification or the date she should have been registered with effect from.
If it refers to the date of notification then output tax is not charged from the date of notification but the date she is registered with effect from. Is it correct
If it refers to the date she should have been registered with effect from then although output tax is charged from that date it should be 20% of the value of sales and not 20/120 of the value of sales because her figures for sales are exclusive of vat. Is it correctIf Candy registered late, VAT is due to be paid on the sales made from the date she should have been registered. ie its as if the sale price did include VAT
so the sales proceeds are 120%
VAT is 20%she pays 20/120, leaving 100/120 as her actual income
HMRC
to be paid on the sales made from the check information here date she should have been registered
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