Chapter 25

Surcharge Period 2019 2020

Late Late Late
Jan,Feb, Mar Jul,Aug,Sep Apr,May,Jun Jul,Aug,Sep

surcharge period => 12 month

1. extend
2. penalty = 2% 1. extend
2. penalty = 5%

Outside EU Within EU
Import - subject to VAT Acquisition
HMRC - Output VAT =>at the point of entry to UK
Input VAT recovered => next VAT return

Export - zero rated supply Despatches

Special Scheme
Normal Scheme 3. Flat Rate Scheme
- Tax Point => VAT return period - Tax Point => VAT return period
- Return period => 3 months - Return period => 3 months
- Summission => VAT Return and payment => Due date 1 month + 7 days - Summission => VAT Return and

Input VAT recovered // Output VAT charges Calculation

VAT paid to HMRC VAT paid to HMRC = Tax inclusive
VAT claim from HMRC
Input VAT cannot recovered.

Tax Inclusive Total Turnover = Sta

Threshold
Turnover < or equal 150,000 => Jo
VAT inclusive Turnover > 230,000

VAT inclusive threshold

1. 250
2. 25
3. 230000
Example 1

Oct,Nov,Dec Jul,Aug,Sep Jan,Feb,Mar

2017 2018 2019
 2021
late late Late
Jul,Aug,Sep Oct,Nov,Dec Jan,Feb,Mar Apr,May,Jun

surcharge period

1. extend
2. penalty = 2%
penalty = 5%

1. extend End
2. penalty = 10%

- subject to VAT
Output VAT charge
Input VAT recovered

- zero rated supply

ecial Scheme
Flat Rate Scheme 1. Cash Accounting scheme
ax Point => VAT return period - Received and Paid => VAT return period
eturn period => 3 months - Return period => 3 months
ummission => VAT Return and payment => Due date 1 month + 7 days - Summission => VAT Return and payment =

Threshold
T paid to HMRC = Tax inclusive Total Turnover x Flat rate % Next 12 months < or equal 1,350,000 => Join
Previous 12 months > 1,600,000 => leave
ut VAT cannot recovered.

x Inclusive Total Turnover = Standard Rated Supply + Zero Rated Supply + Exempt supply

nover < or equal 150,000 => Join

T inclusive Turnover > 230,000 => Leave
Jan.Feb,Mar
2020
 Jan,Feb,Mar

2. penalty = 2%

unting scheme 2. Annual Accounting scheme

nd Paid => VAT return period - Tax Point => VAT return period
od => 3 months - Return Period => 12 months
n => VAT Return and payment => Due date 1 month + 7 days - Summiss => VAT Reurn => 2 months after end of annual period
=> 1 balancing payment
=> Payment => 9 monthly payment => fourth month of
ths < or equal 1,350,000 => Join Threshold
months > 1,600,000 => leave Next 12 months < or equal 1,350,000 => Join
Previous 12 months > 1,600,000 => leave

annual return period = Feb 2019 to Jan 2020

9 monthly payment ### 1
30-Jun-19 2
31-Jul-19 3
### 4
30-Sep-19 5
31-Oct-19 6
### 7
### 8
31-Jan-20 9
Annual Return and ###
balancing payment
er end of annual period

ment => fourth month of annual period