why did I offer to help??

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why did I offer to help??

Joined
Jun 30, 2008
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Location
Stockport
I have not been round these parts for a while - too bust helping young codger with his new business - general unpaid helper basically!
I made the big mistake of offering to help him with his first vat return, as funds for him are obviously tight so an accountant is somebody he thinks he can't yet afford, and he is young and headstrong!
So we come to do his first vat return.
His software makes his invoices like this:
Item 1 x £24.95
Sub total £20.79
UK postage £1.75
VAT £4.16
Total £26.70

So in this instance the sales value ex vat is £20.79 and the vat is £4.16, but the sale total is £26.70 .
So as far as the vat return goes do we ignore the £1.75 as that is Royal Mail and therefore has no vat?
But what if it is a courier on which vat is charged? Do we handle that differently? I have tried to read up on this on line but am getting more and more confused. :bang:
Any ideas ?
Thanks for reading. Would love the time to get back to tending to the old Panda but parental duty apparently never stops.
 
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