box 7 on VAT return

25/04/2019 16:07:58
Box 7 on VAT return states that this should be the total value of purchases and all other inputs excluding ANY VAT. However I have been told by an accountant that it is common accounting practice to include non recoverable VAT in this figure eg on expenditure for business entertaining where VAT was not recoverable the VAT on these items would be included in this figure , is this ok to do or should all non recoverable VAT be excluded as well ?
Thank you

box 7 on VAT return

26/04/2019 08:29:03
If you asked 100 different accountants they'd probably all give you a different answer on what should appear in Box 7...! In your specific example I would personally agree with your accountant and say that yes, the net AND non-recoverable VAT element should be included.

In the textbook used at my practice it says that Box 7 should be everything except:
- Wages/salary payments
- Drawings
- Loans
- Gifts of Money
- Transfers between bank accounts
- Council Rates/Tax
- Non-Supplies
- HMRC tax payments (VAT/PAYE/CT etc)

So, if it's not one of these, it should be in Box 7.
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Re:box 7 on VAT return

26/04/2019 13:12:13
This is in response to the question asked on 25/04/2019 16:07:58


Box 7 should not include VAT.

Please refer to section 3.8 of the following notice:

How to fill in and submit your VAT Return (VAT Notice 700/12)

I hope this helps.

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