turnover and tax deducted

turnover and tax deducted

Postby mighty on Wed Nov 23, 2011 6:42 pm

Just going through my 1st years corporation tax return and I have a question.

When calculating my turnover in profit and loss, do I include tax on labour which I have already been deducted, even though I didn't receive it?

I assume it is thus, though it seems that i will be paying tax on tax this way.

turnover = (all income received at bank + tax deducted for labour content of invoices by main contractors) - flat rate vat paid

Sorry if this appears dumb..
mighty
 
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Re: turnover and tax deducted

Postby pawncob on Wed Nov 23, 2011 10:09 pm

Your gross sales will include any tax already deducted. You'll receive a credit for all the tax that was deducted.
With a pinch of salt take what I say, but don't exceed your RDA
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