Hope I've posted in correct forum.
I need a little advice on my end of year accounts.
In my 1st year of FRS. My accountant has put my gross earnings down including VAT charged. I then have my list of expenditure, ie, small amount of materials, motor costs etc.
So now my taxable income (income over expenditure) is a fair bit higher than last year, meaning my income tax bill has increased and this year I get no tax rebate as I usually do. I have 20% stopped at source, as in building trade.
I would have thought that my payments to IL throughout the year on my VAT returns would have been taken of my gross income? There is nothing in my expenditure column.
Surely in my case if it is not offset then I'm better out of FLS because I am paying significantly more income tax which is far more than the bit I make from the flat rate scheme? I do not claim any vat back either.
I understand if you say "ask your accountant" I have an appointment with them, but just wanted to understand it a bit more before I go.
As you surely realise, my knowledge in these matters are minimal, so if explanations can be as simple as possible I would be grateful.
I need a little advice on my end of year accounts.
In my 1st year of FRS. My accountant has put my gross earnings down including VAT charged. I then have my list of expenditure, ie, small amount of materials, motor costs etc.
So now my taxable income (income over expenditure) is a fair bit higher than last year, meaning my income tax bill has increased and this year I get no tax rebate as I usually do. I have 20% stopped at source, as in building trade.
I would have thought that my payments to IL throughout the year on my VAT returns would have been taken of my gross income? There is nothing in my expenditure column.
Surely in my case if it is not offset then I'm better out of FLS because I am paying significantly more income tax which is far more than the bit I make from the flat rate scheme? I do not claim any vat back either.
I understand if you say "ask your accountant" I have an appointment with them, but just wanted to understand it a bit more before I go.
As you surely realise, my knowledge in these matters are minimal, so if explanations can be as simple as possible I would be grateful.