Invoices at Shows etc

[John G]

Thanks for the info - still a little confused though. Just say I sell mugs @ £6.00 inc vat - if I don't issue an invoice for each mug how do I account for it in my accountancy software (quickbooks) for vat and stock control.

Is it as simple as lumping them all onto one input/order as follows:
20 mugs @ £5.00 + vat
Customer - Sold at Show.
Paid in cash.

This would keep my books right but would it be enough for the vat man if ever I was asked to show records.

TPM: I'm hoping to do one sat or sun as a tester and I think it will be all local photo's that I have taken and "I heart blah blah" mugs, badges t'shirts etc. I'll take my mug/flat bed and badge presses and a load of pre printed sub/laser sheets, make a few and then press on demand. Bit scared to take laptop, plotter, laser and sub printers for something that might not take off - especially as its 50 odd miles away.

[John G]

The stamp is a good idea - I could used 2 part ncr and that way when stamped i'd have a copy and so would the customer - nice one!

[Lee]

excellent - sounds great - Im sure you'll do very well!

[Stitch Up]

We have one of these:

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http://www.twinlock-scribe.co.uk/html/t ... e_654.html

[John G]

Nice one John, i'll stick to a basic ncr and stamp but if it was successful i'd consider one of those.

Cheers John

[bms]

Thanks for the info - still a little confused though. Just say I sell mugs @ £6.00 inc vat - if I don't issue an invoice for each mug how do I account for it in my accountancy software (quickbooks) for vat and stock control. Is it as simple as lumping them all onto one input/order as follows:20 mugs @ £5.00 + vat Customer - Sold at Show.Paid in cash. This would keep my books right but would it be enough for the vat man if ever I was asked to show records.

Yes absolutely, cash sales inc vat recorded in your accounting package and cash paid into bank = happy tax man

[John G]

Thanks for confirming Martin - hope there's enough sales to worry about the tax man

[Ian M]

John,

Just do what they do at petrol stations. They only give a VAT reciept if the cutomer asks for one. I'd also do what Martin suggests & you can get stamps made up while you wait at Staples.

I like chips too, the really dark brown kind.....yum yum.

[John G]

Hi Ian,
I think garages/shops use a different type of vat system, there are a few out there for retail rather than straight forward companies. There's also one where I think you pay between 5 - 10% on your annual turnover rather than on each purchase but you need to be signed up from the start.

Edit:
It seems its called flat rate retail scheme and for printing its 8.5% of annual t/o but you cannot claim the vat back on stock you buy.

[Matt Quinn]

John,

You're making this far more complicated for yourself than it needs to be - YES there are special apportionment schemes for certain circumstances. But for a basic shop or stall the simplified situation is entirely appropriate.

SO long as you account for all the goods sold on the day - It shouldn't be hard to construct a proper record (daybook) for the day's retain sales and it IS accounted for in your main record as previously suggested. If you have so many sales this becomes a problem or a pain then really an electronic cash register system is probably necessary...

To use the point of sale scheme:

1) If you have to because you sell goods at different rates - Identify the appropriate VAT rate for each item you sell at the time of sale. For instance, you can use a till that will differentiate between goods sold at different rates of VAT - standard, reduced and zero.

- This shouldn't be an issue for most things BUT if you do sell zero-rated (or reduced rate) goods all you need to do when using a duplicate book is put a star next to them and a note on the bottom of the receipt stating 'Vat = 0%' etc.

2) Work out your daily gross takings, which is the full value (including VAT) of all payments that you receive for your retail sales.

3) Identify the proportions of your daily gross takings made at each VAT rate. For instance, a till may provide accurate totals at the end of each day. But your stock tally would also reflect what you sold at zero reduced rates - I suspect this is a moot point at most things will shift at 20% anyway. It's an issue for coner shops that sell maybe bread at 0% and cakes at 20%...

4) To work out your VAT you multiply each of those proportions of your daily gross takings by the appropriate VAT fraction. You must use the correct rate of VAT in force for each day's takings.

5) Enter it into your main accounts as 'cash sales' or we prefer 'retail sales' ....

If these retail events become more regular you probably want to take professional advice DO a search on the HMRC system and Download VAT Notice 727 from January 2011...