First Flat Rate VAT return

Accounting
1

I am just about to do my first flat rate VAT return and I have a couple of queries with regards to the 2k capital assets

  1. the payment will be taken from the DLA - do I claim the VAT in this quarter or when the items are paid for from the current account

  2. the invoice for the capital assets includes delivery costs - I have asked the supplier if they could put the delivery costs on a separate invoice but they have not - how do I produce a purchase invoice to exclude the VAT on delivery but still replicate the sum of the attached invoice from the supplier

I hope that makes sense

Thanks

2

  1. Are you on cash accounting or accrual method for VAT? If it’s the former (most likely) then the VAT would be reclaimed on payment of the item (i.e. when the invoice is settled).

  2. I would simply adjust the VAT return before submission to reduce the amount reclaimed on the delivery element. Just keep a separate note somewhere so that you can identify later why that adjustment was made.

Hope that helps!

3

Thanks Glenn…sorry if I seem stupid but can I clarify a couple of things:

It is cash accounting. Is the payment seen as settled if it is covered by the directors loan account or settled when the loan is paid back to the director

Can two purchase invoices be raised for the one supplier invoice/receipt so the capital assets are on one purchase invoice with the total VAT to be reclaimed and the second purchase invoice would have just the gross delivery costs and no VAT reclaim - both purchase invoices would then have the same supplier invoice/receipt attached as a PDF

I am new to this and want to make sure I do everything correctly with a clear trail for HMRC

Thanks again