VAT return Q

[Teddy Lop]

Doing my head in here trying to decide between de-reg (dodgy as I'm just below the threshold) or attempting to meet new requirements.

Currently flat rate for simplicity but reverse charge rules balls it up, so i'm going to have to switch to VAT accounting.

If I create a xero account can I simply enter all receipts for materials/expenses in a quarter as a gross amount or do they need to be allocated to jobs/invoices?

[khushy]

surely to god/allah/guru whoever - you should be talking to an accountant

[Eric Mc]

Teddy Lop said:

Doing my head in here trying to decide between de-reg (dodgy as I'm just below the threshold) or attempting to meet new requirements.

Currently flat rate for simplicity but reverse charge rules balls it up, so i'm going to have to switch to VAT accounting.

If I create a xero account can I simply enter all receipts for materials/expenses in a quarter as a gross amount or do they need to be allocated to jobs/invoices?

I presume you are talking about the deregistration threshold rather than the registration threshold?

[w1bbles]

You don’t need to allocate transactions to specific jobs in Xero so it should be fairly easy.

[Teddy Lop]

Eric Mc said:

I presume you are talking about the deregistration threshold rather than the registration threshold?

the only year in the last few I was above either was year before last when I was marginally above reg threshold- but even then only by dint of being vat reg and charging/paying increasing turnover.

[MOBB]

If the issue is adhering to the new making tax digital requirements, there is plenty of cheap simple bridging software that should be able to take your existing vat calcs method and submitting them for you

[Eric Mc]

Teddy Lop said:

Eric Mc said:

I presume you are talking about the deregistration threshold rather than the registration threshold?

the only year in the last few I was above either was year before last when I was marginally above reg threshold- but even then only by dint of being vat reg and charging/paying increasing turnover.

If you are genuinely below the VAT de-registration threshold, de-register.

If you DON'T want to de-register, if you are currently trading below the VAt REGISTRATION threshold, you can continue to use the old VAT return system.

[The Ferret]

MOBB said:

If the issue is adhering to the new making tax digital requirements, there is plenty of cheap simple bridging software that should be able to take your existing vat calcs method and submitting them for you

I'm guessing the issue isn't digital tax, but the new reverse charge rules for the construction industry. OP is/was on flat rate scheme and this doesn't marry well with the new rules.

If so, I share your pain, as do thousands out there. As if digital tax and brexit weren't enough to worry about, HMRC thought it would be a good idea to throw this piece of sh*t at us at the same time. And its always construction that suffers. I'm sure one of their goals is to try to put the smaller traders out of business, but that's just my cynical view on them.

Sorry rant over, back on track....are you questioning whether you need to enter all your invoices individually or as one bulk transaction? I believe that concession is only available to some retailers, but happy to be corrected by someone if they know differently.

[MOBB]

Aha ignore me :-)

[Stephanie Plum]

Eric Mc said:

Teddy Lop said:

Eric Mc said:

I presume you are talking about the deregistration threshold rather than the registration threshold?

the only year in the last few I was above either was year before last when I was marginally above reg threshold- but even then only by dint of being vat reg and charging/paying increasing turnover.

If you are genuinely below the VAT de-registration threshold, de-register.

If you DON'T want to de-register, if you are currently trading below the VAt REGISTRATION threshold, you can continue to use the old VAT return system.

This is where I am currently at with my consultancy company, but I keep getting emails from them saying I must register for MTD.

[Eric Mc]

Stephanie Plum said:

Eric Mc said:

Teddy Lop said:

Eric Mc said:

I presume you are talking about the deregistration threshold rather than the registration threshold?

the only year in the last few I was above either was year before last when I was marginally above reg threshold- but even then only by dint of being vat reg and charging/paying increasing turnover.

If you are genuinely below the VAT de-registration threshold, de-register.

If you DON'T want to de-register, if you are currently trading below the VAt REGISTRATION threshold, you can continue to use the old VAT return system.

This is where I am currently at with my consultancy company, but I keep getting emails from them saying I must register for MTD.

You don't. However, HMRC has no real way of knowing this as the £85,000 threshold is based on a 12 month period and VAT returns are based on 3 month periods. So, they will continue to waste time telling you to do something you have no legal obligation to do.

[Stephanie Plum]

Thanks Eric. Your advice is always appreciated.

[LeighW]

Just a heads up to anyone affected by the new reverse charge rules for VAT - it has been delayed by a year until October 2020. Result!

https://www.theconstructionindex.co.uk/news/view/c...