money in a VAT account

[podonnell@inbond.com]

During our normal business running, we take payments from our customers and transfer the VAT into an account specifically for this. When we do our VAT return each quarter, we either pay the difference between input VAT and output VAT to the IR or they pay us,,,,What do we do about the money that is still in the VAT account, and who does it belong to, and most of all... is it taxable.

Appologies to all for long winded question
Many thanks
Paul

[Wendyc]

Hi Paul

I presume that you mean that you put the VAT into a seperate business bank account.

You can move the additional money from this bank account into the business current account as it belongs to the business. There are no tax implications if it is left in the business.

Wendy