17 August 2006
I am sure that there is an easy answer to this question, but I would be most grateful if Taxation readers could put my mind to rest on it.
My client started trading last year and has just registered for VAT, backdated to the commencement of the trade.
His supplies are zero rated and he has just received a repayment of VAT of approximately £10,000 from HMRC representing the input tax previously paid by him.
Am I correct in including the repayment for
31 December 2005 in this year's accounts as a sundry receipt that is liable to income tax?
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