A whole VAT return from the books
Take one quarter's totals from the day books and the cash book, fill in every box of the VAT return, then post the payment.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
Task 1The VAT boxes: 1, 4 and 53 questions
Work through a return in the same order every time: box 1, then box 4, then box 5.
Fernley Cycles has no Northern Ireland or EU trade, so boxes 2, 8 and 9 are nil and box 3 is the same as box 1.
| From the books | VAT |
|---|---|
| Sales day book | 7,720.00 |
| Cash book: cash and card sales | 2,490.00 |
| Sales returns day book | 150.00 |
| Purchases day book | 4,280.00 |
| Cash book: cash and card purchases | 460.00 |
| Purchases returns day book | 130.00 |
The cash and card purchases include a meal for customers, with VAT of £30 that cannot be reclaimed.
Task 2The value boxes: 6 and 73 questions
Task 3Check it, send it, pay it3 questions