Monday 15 November 2010

Paying VAT for the first time

There is something in my character that requires me to fill in forms before the deadline, to be legally exact, and generally be a model citizen. Boring.
I went online to register my VAT returns (is that the correct term?). I had signed up to do it online, rather than wait in a queue at the post office. When I registered with the VAT authority I was told that my first return should be for October, and that I had until mid-November to do this. I felt confident, I had entered all my expenditures for October, calculated the VAT on items with depreciation and items without depreciation, items with 100% VAT and items with 2/3rds recognized, etc., etc.
Somehow I ended up at a page where they wanted me to enter each receipt manually. That didn’t sound right and I correctly panicked and phoned Ayelet (my tax advisor). I had ended up at the wrong place. She guided me through the process, which was as simple as I had originally thought, and voila it was completed. But lucky I phoned her. Because of the fact that I only start earning in November, I had nothing to balance the VAT I had spent on my purchases; so I had to put a zero in all the boxes and I’ll report on both VAT spent and VAT received in mid-January.
Now I have to work out how to pay national insurance online.

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