RE: FN-FORUM Re: Vat on Quotes

date posted 31st January 2003 15:56

> Just a quick question along the lines of this, but if I
> receive an invoice
> for goods purchased for my business, when I deduct the cost
> of the goods
> from my Income tax bill I assume I include the total
> including VAT? Correct?
>
> Sam Morgan


Answer depends on your VAT status.

If you're VAT registered you get the VAT back, so no, the cost is the ex
vat cost. (simplistic since income tax is different for each company
status situation)

It sounds like you're a sole trader, so the cost to you if you're not
VAT registered is the price you paid.

Of course not all purchases can be directly off set against income tax.

Good advice is to get an accountant and let them tell you what to do!

(usual I am not a lawyer disclaimers apply)

HTH

Tony