Checking if we are over the VAT threshold
Hello,
Is the (Reports-Payments-Data Range Reports) sales report a good way to check if we are over or under the 85k VAT threshold. Is the ‘income’ figure on the sales report the figure used to determine if we are over the VAT threshold?
Many Thanks!
Checking if we are over the VAT threshold
Hello,
Is the (Reports-Payments-Data Range Reports) sales report a good way to check if we are over or under the 85k VAT threshold. Is the ‘income’ figure on the sales report the figure used to determine if we are over the VAT threshold?
Many Thanks!
67 replies
Seller_esvgLzKXw2YAl
No, the payments reports, tell you what you have been paid!
You need the sales reports. But surely you have been recording your sales elsewhere?
As turnover for VAT registration includes all sales, from all channels.
To add to that, you can get a sales figure from the summary as well.
Seller_tRuvBEHDedp4q
As others have said, you wont have to increase prices by 20% to keep your net profit.
By the time you have reclaimed VAT on goods and services brought in its often in the region of 8-12% increase.
However, this does depend on how much profit you are making on the goods, if you sell zero rated goods etc.
I know someone who sells zero rated goods almost exclusively. They claim VAT back on everything but have very little VAT to pay on their sales - as such they are often given a VAT rebate.
I used to use spreadsheets - but with ‘Making Tax Digital’ HMRC are now expecting us to move to online accountancy packages (and I suspect it will be required within a few years) so if you are going to bite the bullet I would go straight to one of them. I moved to Xero 2 years ago as it was recommended by my accountant. They have access to my figures at year end and I have nothing I need to send them except a yearly stock total. I get my suppliers to email my invoices as a PDF which I forward onto Xero - so no more keeping paper documents.
As others have said - talk with your accountant.
Seller_6sxtIS0RbZ5k7
You don’t even need to run the reports, just go on the sales chart on the home page and select ‘custom’ then do the last 12 months. Or you can do the last 11 months, deduct from the £85,000, and whatever is left is the amount you can’t exceed this month.
Seller_FEXQNLthJaFTn
You should NOT be using any Amazon reports as a basis for your VAT returns.
You must use you Company account ledgers.
I absolutely recommend you refer to an accountant because if you have even contemplated using Amazon reports you clearly do not understand how VAT works.
That may sound harsh but if there is anyone you do not want to cross it is HMRC!
Seller_0jWlqgUh2docO
never go on dragons den if you dont do your own bookkeeping 
Seller_zRxGmTYygCKIT
Sounds like you need some proper accountancy software.
From there, you could run the P+L for the last 12 months to get the rolling sales figures.
Your accountants fees are quite a lot compared to ours. I guess because of the manual paperwork?
We pay less accountancy fees if we use sage. Reason being is that the accountant prefers sage, they know how it works and most of their clients use it.
Seller_nex6aLZ9HPynF
A couple of things in sales dashboard to note, if you offer lets say buy four get one free, all it £10.00 it will show your total as £40.00, not £30.00
If you charged £5 for postage, it does not show that figure in the totals so you need to allow for that as well
