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bonike123
January 24, 2020
Question

Definition of business income

  • January 24, 2020
  • 1 reply
  • 0 views

question from the uk: does the definition of business income include VAT? previously, my accountant has shown turnover in my financial statement as income less VAT however in QuickBooks there is an option for showing VAT paid so presumably if in input the VAT I've paid I should input my gross turnover as business income (so incl. VAT)? please help :)

1 reply

G
GeorgiaC
January 24, 2020

Hello bonike123,

 

Business income does not include VAT, this is considered a liability as owing to HMR and will show on the balance sheet as a current liability under the VAT Control and VAT Suspense accounts.

 

Thanks 

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