VAT payments as expense ? box 30 income tax

see box 30 rules

VAT payments as expense ? box 30 income tax

also note this please

I completely get how VAT payments and their treatment in QuickBooks can be a bit puzzling, especially when you’re expecting them to show up in reports like your Profit and Loss or the Income Tax section in Box 30, Trindleberry. Let’s break it all down and get some clarity on this for you.

When you charge VAT on sales, that amount gets added to your VAT liability account because it’s not technically your money; it’s a tax you collect on behalf of HMRC. Similarly, when you pay VAT to HMRC after submitting your return, this payment reduces what you owe in the VAT liability account, and it’s not an expense. That’s why you won’t see VAT payments in your Profit and Loss report.

Regarding Box 30 in QuickBooks, VAT payments don’t appear there because they aren’t part of your taxable income or allowable business expenses under the Standard VAT Scheme. However, if you’re using the Flat Rate VAT Scheme, a portion of your VAT payment to HMRC may count as an allowable expense.

To monitor your VAT activity in QuickBooks, I’d recommend running the VAT 100 Report. This report gives you a breakdown of what you’ve collected, what you owe, and any payments made to HMRC. Here’s how you can do this:

1. In the Taxes page, select the View reports dropdown.
2. Pick the VAT 100 report and set the Report period.
   
3. Optionally, apply other Filters to narrow down the data that will show in your report.
4. Once finalized, press Run report.

If you're concerned about how VAT has been set up for your business or want to double-check any specifics, it might also be helpful to consult with your accountant. They’ll ensure that everything aligns with HMRC requirements.

I hope this clears things up for you. VAT can feel a little tricky at first, but once you get the hang of where to look and how it’s categorized, things become much simpler. Don’t hesitate to reach out if you have further questions. I’m here to help. Take care.

thanks, just for some VAT advice.  i am on the FRS so , cannot claim VAT back. 

if my purchase VAT is £10,000  ( goods and supplies , as business is heavy on supplies to purchase for sale )
and my sales VAT is £6000  

Im better off being on the standard VAT , instead of FRS , correct ? 

as i would then be in a VAT credit, where my purchase VAT nearly doubles my Sales VAT ?  

( For example )