How do you pay your taxes?

dvdbunny

dvdbunny

dvdbunny

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20 Dec 2004
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Hi Guys

I got an online store, but unfortunately haven't made much sales. And constantly the inland revenue sends me the tax form that i am supposed to fill out. I haven't been doing that and have had to pay many penalties which is causing me to now go into the overdraft with my bank. I hope you can help me, how do i fill out this form that they keep sending me

First i get this yellow one titled:

Value Added Tax
Notice of Assessment of tax
Surcharge liability notice extension

Our records show that the return of your value added tax for the period from 1 January 2007 to 31 march 2007 has not been received

The commissioners of customs and excise therefore asses the amount of tax payable by you for the period as being £24

Now a few months ago i got this charge as well and so i called the HM customs and excise and they said yeah you got to pay it, so i ended up paying the charge. Did i get this form because i didn't bother to fill out my tax return or is this perfectly normal, does everyone pay this £24 every 3 months?

Then each month, or i think it's every 3 months i also get this green form titled:

Value added tax return

Do you guys know how i fill that in? I have called them but always find it difficult to take things down on the phone.

Even if my store does not sell any thing for that period on the Value added tax return, do i still need to fill it out and how?

I so hate filling out these forms and wished i never bothered getting a VAT number

Please help me out

Many thanks
 
hi over clocker

When i buy from from my wholesaler i use my VAT number to buy the goods without VAT. Then i include my markup price (my profit) Then i add VAT (17.5% to that markup price). Then i sell.

Now when i get the Value added tax return, it's 1 double sided green sheet of paper. The back just has information. The front has a group of boxes

right at the bottom you tick a box if you are enclosing a payment. Do i need to enclose a payment?

anyway above that there are a group of boxes 9 in total. which number box do i fill in? in each of those boxes there are 2 areas to fill in, one area there is a £ sign and to the side there is a dotted line with a P sign what does that mean?

I sometimes buy from my wholesaler a bulk order, the wholesaler is based in Ireland. I buy without VAT and when i receive the goods i still don't pay any VAT. But sometimes i also opt for the wholesaler in Ireland to drop ship the order direct to my customer.

Now i also keep getting this EC Sales List, again that is a double side form, on the back it's just information. On the front it has 15 white boxes to fill out. Now i don't have to do that right. Just because my wholesaler is in Ireland, doesn't mean i am in dealing in Ireland. At the time being i only sell inside the UK.

I also a while back last year i sold some goods but never claimed back the VAT, is it too late to receive it now?

TIA

Edit: hi seaviewuk, i registered for VAT at this early on as i didn't want to have to pay VAT when buying a bulk from the wholesaler, i mean my products are already way over £100 at wholesale and retail for just over £200, so that's quite a lot of VAT i would lose if i had to pay it, so i wanted to get VAT registered.
 
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I do keep all my invoices in a file, in a drawer

But i just having a bit of hard time understanding this all

what i don't get is the Value added tax return form, out of those 9 boxes, i thought i am supposed to list each prouduct i have sold along with the price i paid without VAT and the VAT price and then claim it back, but how do i do it there is not enough room to list all the products
 
hi many thanks for all your reply guys, your all really helpful, and i really thank you all. I am a fast learner so once i do learn this everything should be fine, because like you say it isn't hard. But one thing i would like to know, do you have to send your vat return form in once a month or once every 3 months?

Also if i don't make any sales in that time frame what do i do?
 
Happy 2008 thanks very much for your response i have got an excel spread sheet setup the way you suggested and i think everything is sorted now.

Can you please explain one more thing to me?

As i am a very small business with a turnover less than £10,000 is it worth my being VAT registered?

The reason i ask is because miggyb post above seems to suggest that if i wasn't VAT registered i wouldn't have to add output vat on each sale, and would be able to claim back input vat. Is this correct?

My current understanding is that regardless of whether i am VAT registered i would still need to add output tax on all sales. As i am VAT registered i currently do not pay VAT on my purchases . Can i improve on this situation?

Thank you everyone for all your help, i think i got my head around this now.

Regards

Andy
 
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