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Categories explained: VAT Owed to HMRC
Categories explained: VAT Owed to HMRC
Steven Anderson avatar
Written by Steven Anderson
Updated over a week ago

This will have a balance in it, if all of the VAT on your sales is greater than the VAT on your purchases for your current VAT period. Meaning you have an overall net positive amount to be paid to HMRC that you have collected on your sales.

What's included

Standard VAT scheme - If you have collected more VAT on your sales than you are claiming on your expenses, you will have a difference to pay HMRC at the end of your VAT period.

Flat rate VAT scheme - The amount of VAT you owe to HMRC at the end of your VAT period will be dependent on the industry you work in and what your specific VAT rate is on sales. This category will be the value of your sales multiplied by your specific flat VAT rate.

What's not included

Corporation Tax or PAYE/NI owed should both be separated in to their relevant category.

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