Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 02 Nov 2023 10:49:26 GMT by
Hello, I'm a sole trader who recently had to register for VAT. I submitted my first VAT return and received a refund from HMRC due to my input VAT being greater than my output VAT. I'm confused about how to account for the refund. 1) Do I include it as part of my business income in my self-assessment? 2) Do I include it in my subsequent VAT return (it was received in the period for the subsequent return)? Or is it contained within the period of the return in which it was generated and it's no longer relevant? 3) Now I'm VAT registered, for my future self-assessments, do I enter my income and expenses including or excluding VAT? (If I exclude VAT, what about the refund?) I'd be do grateful for any help. Thanks!
Posted Thu, 02 Nov 2023 17:28:13 GMT by HMRC Admin 25 Response
Hi  sole_trader,
VAT payment you receive, are declared in the gross profits as part of the turnover.
VAT paid out to the VAT office, is declared as an expenses in the self employment, box 30 (SA103F).
If you have submitted your tax return, you would need to amend box 30 to reduce expenses deducted and account for the VAT refunded.
If you have not yet submitted your return, you would show the net VAT amount in box 30.
Thank you. 
 
Posted Fri, 03 Nov 2023 09:35:00 GMT by
Thanks for your response, that clears things up. With regards to the subsequent VAT return (for the period in which I received the repayment), do I list the repayment in the sales section of the VAT return, or is it not mentioned at all?
Posted Thu, 23 Nov 2023 07:51:27 GMT by HMRC Admin 20 Response
Hi sole_trader,
If you receive a VAT repayment from HMRC you do not need to list the repayment on any subsequent VAT returns.
Thank you.

You must be signed in to post in this forum.