are VAT repayments taxable?

[chill2uk]

Hi - please can anyone advise me if my VAT repayment i received should be included on my tax return under income and profits....ie: is it taxable?

[jpcentral]

Your VAT repayment is not taxable - assuming you have calculated your VAT correctly.

John Perry
Central Business Services
Loughborough
www.centralbusiness.co.uk

[chill2uk]

Thank you for your advice John. i am just not sure if i should include my VAT repayment under the "other income/profits" section on my tax return or if it isnt necessary to include it? I am only recently VAT registered so havent had to worry about this part before!

[Eamon McNicholas]

John is right. A VAT repayment is not chargeable income or profit in the same way a payment of VAT to HMRC is not a deductible expenditure.

DonÂ’t forget to keep documentary proof of the VAT repayment in the business records to show what it is and that it is not trading income.

Eamon Mc Nicholas
Tax Barrister

www.EamonMcNicholas.com

[The above is not to be taken nor used as specific advice]