The decision maker should allow an expense of the business where
1) the amount of VAT paid to C&E during the assessment
period (DMG 31410)
2) the amount of VAT received from C&E in the same period.
The expense is the amount by which
1. exceeds
2.
Note The decision maker should only consider the net VAT
payments made on the returns made which come within the assessment
period.
The assessment period for the self-employed person is a year, the period of the accounts. Within that period, four VAT returns were made and in each return, the self-employed person was due to make a payment to C&E. Total payments for the year were £600. This amount was allowed by the decision maker as an expense of the business.
The assessment period for the self-employed person is 6 months. Within that period, two VAT returns were made. In one return a payment of £150 was made and in the other, a refund of £50 was received. The amount of the expense allowed by the decision maker was the difference between the 2 figures, that is £100.
