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Re:VAT online guide

24/01/2019 07:56:45
I need to know the correct method when deducting CIS tax on labour and adding the VAT on.

Should the VAT be charged on the total amount eg:

Labour £100
Materials £100
subtotal £200
+ VAT £40
Less CIS @ 20% on labour element £20

Total to pay£220

or

Labour £100
Materials £100

Less CIS @ 20% on labour only £20
subtotal £180
VAT @ 20% £36
Total to pay £216

Would be really grateful to have clarification of which method is correct. Thanks
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Re:VAT online guide

24/01/2019 10:34:45
Hi,

Thanks for your question.

VAT should be applied to the total amount of the sale before any deductions, including CIS, so your first example would seem appropriate.

I hope this helps.
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VAT online guide

21/02/2019 14:05:22
Hi

Am I able to submit my VAT 2 weeks early before the deadline?
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Re:VAT online guide

21/02/2019 16:46:03
Hi,

Thanks for your question.

You can submit your VAT Return as soon as it becomes available in your online VAT account, but submitting early is not encouraged as there could be trading after submission and the return would need amending.

Just remember that we cannot start to process a VAT Return until the day after the period end date, even if submitted early.

I hope this helps.
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VAT online guide

25/02/2019 14:24:55
As Clerk to a Local Parish Council we have an exemption for VAT . We are in the process of the construction of a new purpose built Community Centre (£1.2m) and I need some advice on recovering VAT during the design and build. Thankyou
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Re:VAT online guide

26/02/2019 12:42:41
Hi,

If certain construction criteria are met then some buildings may be built without any VAT charge, so no VAT to recover.

If the project does not qualify for zero-rating of VAT, then the recovery of this VAT will be subject the normal conditions associated with your entity as a Parish Council.

Please read carefully Sections 3 and 14.7 of VAT Notice 708: Construction.

Please read carefully Sections 2, 4, 7 and 12 of VAT Notice 749: Local authorities and similar bodies.

VAT is a self-assessing tax, so please follow the guidance included in these links:

VAT Notice 708: buildings and construction

Local authorities and similar bodies (VAT Notice 749)
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VAT online guide

01/03/2019 12:25:03
I have found out that no online accounting software can handle the VAT Margin Scheme . I sell second hand furniture on ebay and have only recently gone over the threshold so still new at this, and trying to comply with MTD but am stuck on how to if there is no provision in any of the software.
Please advise how I can do it.
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Re:VAT online guide

04/03/2019 12:55:14
Hi,

Please see Section 4.8 of VAT Notice 700/22: Making Tax Digital for VAT regarding Margin Scheme traders.

VAT is a self-assessing tax, so please follow the guidance included in this link:

Digital record-keeping

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