[Imclandestino]

Thanks for the great response!

[Imclandestino]

Thanks, this has been really helpful.

If you don’t mind could I ask one more question!

We are looking to offer a membership which includes discount on products. 
This works out fine for most products, however on a couple of items the discount we get from the supplier is lower. E.g.

£30 RRP 
£23.40 cost to us Inc vat

£19.50 cost to us net

£3.90 vat

£22.50 sale price to our customers

£3.75 vat 
£18.75 net 

This would obviously mean a loss of 0.75p

Now due to vat only being paid on profit. Would items like this be taxed differently?
E.g.

£19.50 cost

£22.50 sale price

£3 gross margin
0.50 vat 

£2.50 profit

 

Thanks in advance

[Imclandestino]

Thank you for the reply! 
Would I have to pay the full £4.06 to HMRC then reclaim the £2.92
Or would I deduct the £2.92 from the £4.06
Then pay the remaining £1.14 to HMRC 

Thanks in advance

[Author]

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