Working out VAT bill in your accounts?

[Jimbo 11]

Hi guys another vat question sorry

i think i will prob exceed £85k turnover in this first year - prob not that hard when you sell a handful of £5k-£10k cars!!

i am keeping a stockbook spreadsheet where i list all the details as per lawgistics and record margin and record vat on that margin

now i have my accounts spreadsheet which details all other stuff like web design, adverts, prep stuff. 

Am i right to put all my expenses with any vat associated in my outgoing tab. And then incoming tab im listing all the cars sold. But instead of allowing the auto vat sum to do 20% of the sale price of the car im overwritting it with the margin vat from my stock book figure. 

This should then give me a spreadsheet showing all my expenses and the vat ive paid. Then other spreadsheet showing all vat i need to pay via margin scheme. And lastly a little sum to subtract off my expenses vat from vat i need to pay from sales. 

Have i got that right? Dont want to make mistakes early

 

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quick 2nd question;

how do you reconcile bank account with cash coming in ? For example if you sell a car for £1,000 cash and pay £400 of that cash in and use the remaining £600 to buy another car it wont match your sales spreadsheet for that day as youve used some money to buy more stock in cash

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many thanks!!!

Edited September 5, 2017 by Jimbo

[BHM 994]

Q1. Why don't you get yourself an accountant on board & make life easier for yourself? It's a few quid per year & you'll know it'll be right.

Q2. You don't have too. It's your money & your business so you can do what you want with it & all of your debits/expenditures will be shown on your accounts anyway.

I think you're looking at this from the perspective of an employee justifying themselves to their boss. As long as your books tally a problem should only arise if you banked too much money.

[Arfur Dealy 823]

You need to register for VAT now if you expect to exceed the threshold. Don't waste your "life" doing your own accounts, get an accountant / book keeper to do it for you, they pay for themselves  

[Jimbo 11]

33 minutes ago, BHM said:

Q1. Why don't you get yourself an accountant on board & make life easier for yourself? It's a few quid per year & you'll know it'll be right.

Q2. You don't have too. It's your money & your business so you can do what you want with it & all of your debits/expenditures will be shown on your accounts anyway.

I think you're looking at this from the perspective of an employee justifying themselves to their boss. As long as your books tally a problem should only arise if you banked too much money.

Thanks. I do have an accountant onboard now but i always do my spreadsheets from previous business and give him the spreadsheet, bank statements and reciepts and he does the rest

11 minutes ago, Arfur Dealy said:

You need to register for VAT now if you expect to exceed the threshold. Don't waste your "life" doing your own accounts, get an accountant / book keeper to do it for you, they pay for themselves  

Thanks mate

i was just wondering if im on the right lines so i can keep ontop of vat and tax i need to pay

are my sums right in first post as to how to set it all out and account for it?

[Arfur Dealy 823]

8 minutes ago, Jimbo said:

Thanks. I do have an accountant onboard now but i always do my spreadsheets from previous business and give him the spreadsheet, bank statements and reciepts and he does the rest

Thanks mate

i was just wondering if im on the right lines so i can keep ontop of vat and tax i need to pay

are my sums right in first post as to how to set it all out and account for it?

No problem  your accountant is the best person to advise you on how to do your figures

[justina3 518]

You could go five months and then be surprised that your doing so well then register for VAT