Quote Originally Posted by Justloadit View Post
What is important, is that the year end figures balance, that is turn over, input VAT, Output VAT.
Not true in my recent experience as described above. The taxman looks at each period separately and does not have a year end figure for vat purposes.

Now for normal tax he will look at the year scenario where the tax system will look at your vat output tax paid - calculate a potential turnover and compare it to your declared turnover. This is a reconciliation that you should do every year to make sure you have your ducks in a row.