VAT Returns

VAT
Returns

The VAT return form consists of nine boxes and it shows either the abount payable to HM Revenue and Customs or repayable to you be HM Revenue and Customs.






Below
is an example of a VAT return for a VAT period 1
st
May 2012 to 31
st
July 2012.



What
does this mean?

Box
1 is the amount of VAT your client has charged his customers on sales
and is owed to HMRC

Box
2 is the amount of VAT your client has charged his customers on
purchases from EC member states and is owed to HMRC. If your client
only trades in the UK then this will be none.

Box
3 is the total of all VAT due to HMRC (before deductions for VAT paid
out by the business)

Box
4 is the amount of VAT paid by your client on purchases of goods or
services and is owed to your client by HMRC

Box
5 is the amount of VAT your client needs to pay to HMRC or reclaim
from HMRC on this VAT Return. If box 3 is more than box 4 then your
client owes HMRC the balance because his output VAT is higher than
his input VAT if box 4 is higher than box 3 then your client is owed
money back from HMRC because his Input VAT is higher than his Output
VAT.

Box
6 Is the value of sales and outputs excluding VAT (i.e. net sales)

Box
7 Is the value of purchases and inputs excluding VAT (i.e. net
purchases)

Box
8 Is the Net value of sales to EC member states. If your client only
trades in the UK then this will be none.

Box
9 Is the Net value of purchases from EC member states. If your client
only trades in the UK then this will be none.





VAT
Returns need to be filed online and when you do this you will find
that HMRC system you only enter figures for boxes 1, 2, 4, 6, 7, 8,
9. Their system automatically calculates boxes 3 and 5. This is
useful as you can check these figures to your return and it instantly
highlights typing errors as you have entered the figures. I would
always recommend you email the VAT return to your client before you
submit it to HMRC for their approval. Before online filing was
mandatory then your client would sign the VAT return form before it
was posted I still think to ensure your client is happy with the
figures you still request them to approve the return (after all its
their return not yours!) It gives them chance to review the figures
in case they haven’t told you about something and also to ask you
to clarify and figures they are unsure about before you submit the
return.

Menu Title