I have completed a VAT return for the first time and wondered if it is possible to use the VAT bill as an expense on the equivalent Sole trader self assesment form ? Technically it is a an expense incurred solely due the business. It is not a huge amount, but any advice would be so helpful. Thank you
The VAT you collected from your customers was never your money in the first place, you are simply collecting it on behalf of HMRC. Normally you give all your income and expenses excluding VAT (as on your QuickFile P&L) and the VAT just exists on your balance sheet.
If you use the simplified cash basis for your SA return then they give you the option to instead quote your turnover and purchases including VAT and treat your VAT return payments as an expense. Either approach gives the same bottom line result.
What you can’t do is quote ex-VAT income and expenses but then deduct your VAT payments a second time, that would be claiming the VAT twice.
If you don’t use cash basis for SA then you have to use the net (ex VAT) figures.
As Steve said on your other thread this is straying into the realm of professional advice where you should really be consulting an accountant who knows your specific circumstances. There are some accountants on here (I’m not one) who might give general advice but for accurate information you should speak to your own professional advisors.
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