VAT repayments may be made to VAT registered businesses if they pay out more in VAT on their purchases than they charge on their sales.
This might happen if, for example, you spent a lot on machines for your new business but didn't take much money in the early days of trading. You complete a VAT Return every quarter, setting the VAT you have had to pay against the VAT owed to HM Revenue & Customs (HMRC). If a repayment is due to you it will normally be paid direct into your business bank account a month or so after you have submitted the Return claiming it.
Checkpoints
Income: Amusement Arcade
Expenditure: Amusement Arcade
- Payments to creditors
- Cash purchases
- Licences
- Wages
- Drawings
- PAYE
- VAT
- Tax
- Rent
- Rates/Water rates
- Heat and light
- Telecommunications
- Postage, stationery, advertising
- Motor and travel expenses
- Professional fees
- Insurance
- General expenses
- Bank/finance charges/interest
- Leasing payments
- Capital expenditure
- Other payments