VAT repayments may be made to VAT registered businesses if they pay out more in VAT on their purchases of goods and services than they charge on their sales.
This might happen if, for example, you spent a lot on equipment and so on for your new antiques 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: Antique Dealer
Expenditure: Antique Dealer
- Payments to creditors
- Cash purchases
- Licences
- Wages
- Drawings
- PAYE/NIC
- 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