I’m sorry, this is not at all what I require.
I do not need detailed reports for my VAT return, my question is not related to my VAT return.
My question is regarding my profit/ loss report that I will use to calculate my INCOME TAX, not VAT return.
If I need to run a P/L report to see how much I have earned and how much I have spent for the tax year so I can send it to HMRC so they can calculate how much income tax (not vat) I owe. The P/L report will be incorrect because the expenses is excluding VAT (which I can’t claim back) so it will report a lower figure than I have actually spent for that tax year..resulting in me paying more income tax.
The P/L reports only show net expenses (expenses excluding vat) but i and everyone who uses the FRS require a P/L report that shows gross expenses (expenses including vat) because we cannot claim vat back and will need to submit the expenses including vat to hmrc when doing our income taxes.
Simply, the P/L reports need an option to show gross expenses. Because people on the FRS do not reclaim the VAT back from purchases. Therefore our true expenses are the gross figures. Is there anyway of doing this? …sorry for the long message!
