I wrote an email to my accountant yesterday for an explanation of a VAT issue that I had.
She sent me a really helpful response.
Sorry Mark I’m missing something. Column 1 fully taxable gives taxable (for income tax) of the net amounts of VAT and then you remit the net VAT to HMRC. Column 2 is under flat rate scheme where VAT to be remitted is the 8.5% of the sales amount (£85) but for income tax you are taxed on the net plus 9% VT but get a deduction for the VAT inclusive cost.
Errr, no, not really.