VAT

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Vat on sales to account customers

Q&A – Can sales to account customers be excluded?

2nd March 2020
Q. Within my building supplies store, we account for VAT by using a point of sale retail scheme based on our daily gross takings figures. We have quite a lot of account customers who buy goods from the shop but don’t pay until 30 or 60 days later. We include the sale in the till...
VAT claim for a personally owned van

Q&A – VAT claim for a personally owned van

2nd March 2020
Q. I’m the only director of my company and I own all its shares. I bought a van in my name but I intend to use it in the company’s trade. Can the company reclaim the VAT included in the purchase price? A. If the van was purchased and used privately or for a different...

Is food and drink for customers tax deductible?

4th February 2020
As a business which hosts seminars and courses, food and drink is provided as part of this during the day. A tax inspector refused to allow a tax deduction for the cost because he says that it is business entertainment. Is he correct? Income tax, corporation tax and VAT legislation each contain a similar rule...

Dealing with VAT on fundraising events

30th January 2020
A local sports club held a Christmas fundraising dinner, the club is non-profit making but they are unsure about how to deal with VAT on the income. Also can the club claim any input tax on the costs of the dinner? John Craig provides the answers. The good news is that the income from the...

Rent-free period on commercial property deal

6th January 2020
Mr Brown owns a warehouse that he rents out and the income that he receives is exempt from VAT. He has offered a new tenant a three month rent-free period at the beginning of a new rental agreement. Does this create any VAT problems? Our VAT expert John Craig discusses. Rent-free or not? The first...

What are the rules on motoring expenses and VAT?

3rd January 2020
When you buy a car, unless you use it 100% for business, you can’t reclaim any of the VAT paid on the purchase. However, more generous rules apply to the cost of motoring expenses such as accessories, repairs and so on. John Craig explains exactly what these rules are and how you can benefit from...

Input tax on computers for homeworking

29th October 2019
Your business has agreed that some employees will become homeworkers and has provided laptops to assist them. What VAT issues must you consider with these laptops? John Craig discusses the implications. Homeworking If you provide your employees with a computer and there is no business use, the tax you pay to the supplier is not...

September Questions and Answers

3rd September 2019
Can we submit monthly VAT returns? Q. We struggle to pay our quarterly VAT returns on time because we use the VAT money for other business expenses before it becomes due. Would HMRC allow us to complete monthly returns to help our cash flow? A. Unfortunately not. A business can only submit monthly returns if...

August Questions and Answers

1st August 2019
Does the name on the invoice matter? Q. I am the finance director of a large company and have just discovered that hotel bills we pay for in relation to our sales staff working away from home are always made out to the individual employee and not the company. Does this create an input tax...

New business – when is the best time to register for VAT?

23rd July 2019
You have identified a new business opportunity that you want to keep separate from your main business. What should you consider regarding your VAT recovery if you don’t want to register straightaway? VAT expert John Craig advises. You can voluntarily register for VAT at any time if you are either making or intend to make...