Revenue as debtor on AR ?

S

sean7

Registered User
Messages
19
Hi everyone,

I need an urgent advise: I left my annual return too late and have to send it off asap but the figures don't match :) This is what I think my problem is:

I pay some bills on behalf of my company and account the whole amount (including VAT) as directors loan to the company. On the company's books the payment is recorded amount ex VAT + VAT. On annual return the expenses are listed excl VAT but I believe that since I provided the loan for the whole amount, the VAT amount goes missing. Or do I record the VAT due under debtors?

Simplified Example:

  • Invoice for €1000 + VAT
  • I pay the full amount €1230 on behalf of my company
  • Company records loan from director €1230
  • Company records expense €1000 + €230(VAT)
  • VAT will only be refunded by Revenue in the next financial year
  • On P&L sheet expense is €1000
  • On B/S directors loan account is €1230
  • On B/S P&L account is (€1000)
  • Do I record €230 as Debtor on B/S ???? Do I call it Revenue or taxation or something else??? Or do I record that amount somewhere else?

Would really appreciate quick response if the above makes sense.

Thanks!!!

Sean
 
Annual Return: Tax Return to Revenue or annual return to CRO? Accounts figures dont go into an Annual Return and if a different set of accounts.

Assuming you have no other transactions then there is a VAT refund due in Debtors.

Normally it reduces the amount you owe Revenue in creditors.
 
Thanks Joe! No VAT on sales, only on expenses, so will list VAT amount due from revenue under debtors.

Do I add this amount to other debtors in the notes or call it Taxation, Revenue or VAT? What's the standard practice?

Do I also add VAT amount under debtors on invoices that were unpaid at the end of financial year? I.e. net amount is under creditors/accruals on B/S and the VAT amount does not need to be included anywhere? I'm I correct? Or maybe I have to add whole amount incl. VAT under creditors/accruals and then again only the VAT amount under debtors?

Thanks again for such a prompt response!

Sean
 
The balance on the VAT account should be the same as the amount due on the VAT3s. So if you have claimed VAT on them the include the VAT if not you can let them in accruals.

Strictly speaking Any amounts invoiced to you prior to the year end should be disclosed as trade creditors.
 
So just to confirm. My accounts year ends 30 June & VAT3 period is bi-monthly. If I have an invoice issued for 100+VAT on 25 June (before the end of financial year), I will include full amount (123) under trade creditors/accruals on B/S AND include VAT amount (23) under debtors since this VAT amount will be included in May-June VAT3 return and is reclaimed in July? Can't get my head around this :)
 
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