Advice needed re VAT return for sole trader.

M

Martaa

Registered User
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12
I work as an accounts assistant and after work I want to help a sole trader to file her VAT return. She started trading about 3 months ago and in a few days she should receive her VAT number (invoice basis). I have all purchase invoices and receipts, but the problem is that she didn't keep the records of the CASH sales (service + materials sold). What shall I do in this situation?
-estimate sales?
-ignore it, because in the time of sale she wasn't registered for VAT?
 

if you are

1. Backdating registration 3 months- claim all purchases and take best estimate of cash sales
or
2. If vat number registration from more recent date-only claim purchase invoices from that date and estimate cash sale from that date foward

What level of turnover do you see in 12 months- Is their a reason to register for vat
 
Why has she elected for invoice basis? Turnover of less than €1m or more than 90% sales to unregistered persons qualify for cash basis. As a sole trader does she expect sale of more than €1m ? If not then she should have elected for cash receipts basis. See here for more.
 
The level of turnover should be around 180,000. She wanted to start issuing invoices after each sale, but now I see it's not necessary, I think most of sales will be to unregistered persons.
Can I still estimate cash sales from previous months if she elected for invoice basis? I don't want to have any problems with revenue in future.
Also I think it will be better if she change for cash receipts basis.
 
Surely she should be the one estimating sales, not you. It's a little hard to believe that someone starting out in business doesn't know how much money they've taken in.
 
Martaa said:
I agree, I am feeling like she is trying to hide her income
Click to expand...

If person you are dealing with is not honest with you and trying to hide income like that, better off not dealing with them as everything is fine till they get a Revenue Audit and they try to pass the blame to you

Get her to provide the estimate in writing so you would have back up for vat 3
 
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