If you are VAT registered and using traditional accounting basis, details of your income and deductions would typically exclude VAT, unless VAT is not recoverable.
If you are VAT registered and using cash basis, details of your income and expenses would typically include VAT.
If you choose to include VAT when completing your return, either:
- Put your net VAT payment to us as an expense in box 30
- Put any net VAT repayment you received from us in box 16
Where an item is not deductible as an expense for Income Tax purposes, but the VAT is recoverable, add the recoverable VAT to the expense reported in box 30, or deduct it from the VAT repayment reported in box 16 and add a note in box 103 ‘Any other information’.
Do not include recoverable VAT when working out capital allowances on qualifying capital expenditure. Add the recoverable VAT that’s excluded from the capital allowances computation to the expense reported in box 30, or deduct it from the VAT repayment in box 16 and add a note in box 103.