Originally posted by MarkT
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"You’re just a bad memory who doesn’t know when to go away" JR -
Originally posted by SueEllen View PostDo you think IT contractors only work for IT companies like IBM?Comment
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Originally posted by Alan @ BroomeAffinity View PostDoesn't matter if he's in IT or not anyway. Limited Cost Traders will apply across all sectors. I think this is what our man isn't picking up on.
I'd missed the Limited Cost Trader bit and hadn't done any research on how it might affect me after the December papers.
Now I have and I stand utterly and totally corrected.Comment
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Originally posted by MarkT View PostMy argument over IT was under the old rules.
I'd missed the Limited Cost Trader bit and hadn't done any research on how it might affect me after the December papers.
Now I have and I stand utterly and totally corrected.Comment
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So what DOES qualify?
Alan, maybe you can clarify a couple of things that puzzle me at the moment.
What would be acceptable in your eyes under the term of "goods" - as I have yet to find a list of potentially qualifying goods - just the ones that don't!.
OK there is the one example they give of printer ink - but that is all! Is the definition of "goods" something tangible that you can touch - or could it include for example a CBTNuggets subscription - or a training course?
The other thing that intrigues me is this "accounting period". Are we talking the 3 month payment period, or annual accounts. My reading is that it is the annual one.
Oh and before someone says "why don't you ask your accountant" I am asking him as well. However, second (qualified) opinions are always useful!Comment
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Originally posted by dmini View PostAlan, maybe you can clarify a couple of things that puzzle me at the moment.
What would be acceptable in your eyes under the term of "goods" - as I have yet to find a list of potentially qualifying goods - just the ones that don't!.
OK there is the one example they give of printer ink - but that is all! Is the definition of "goods" something tangible that you can touch - or could it include for example a CBTNuggets subscription - or a training course?
The other thing that intrigues me is this "accounting period". Are we talking the 3 month payment period, or annual accounts. My reading is that it is the annual one.
Oh and before someone says "why don't you ask your accountant" I am asking him as well. However, second (qualified) opinions are always useful!
Examples of relevant goods
This isn’t an exhaustive list:
stationery and other office supplies to be used exclusively for the business
gas and electricity used exclusively for your business
fuel for a taxi owned by a taxi firm
stock for a shop
cleaning products to be used exclusively for the business
hair products to use to provide hairdressing services
standard software, provided on a disk.Comment
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Examples of supplies that aren’t relevant goods
This isn’t an exhaustive list:
accountancy fees, these are services
advertising costs, these are services
an item leased/hired to your business, this counts as services, as ownership will never transfer to your business
food and drink for you or your staff, these are excluded goods
fuel for a car this is excluded unless operating in the transport sector using your own, or a leased vehicle
laptop or mobile phone for use by the business, this is excluded as it is capital expenditure see paragraph 15.1
anything provided electronically, for example a downloaded magazine, these are services
rent, this is a service
software you download, this is a service
software designed specifically for you (bespoke software), this is a service even if it is not supplied electronicallyComment
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Originally posted by Alan @ BroomeAffinity View PostExamples of supplies that aren’t relevant goods
This isn’t an exhaustive list:
accountancy fees, these are services
advertising costs, these are services
an item leased/hired to your business, this counts as services, as ownership will never transfer to your business
food and drink for you or your staff, these are excluded goods
fuel for a car this is excluded unless operating in the transport sector using your own, or a leased vehicle
laptop or mobile phone for use by the business, this is excluded as it is capital expenditure see paragraph 15.1
anything provided electronically, for example a downloaded magazine, these are services
rent, this is a service
software you download, this is a service
software designed specifically for you (bespoke software), this is a service even if it is not supplied electronicallyComment
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Originally posted by Lambert Simnel View PostJust out of interest, Alan, do you reckon this bias against "services" is a stance taken as an anti-avoidance measure? It seems very 20th century in its outlook, otherwise.Comment
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Originally posted by Alan @ BroomeAffinity View PostNo - it's because those traders they want moved into 16.5% don't buy goods as much as services. The list is constructed accordingly.
I thought the key target for this legislation was the raft of two person companies being set up by unscrupulous outsourcers - basically providing (say) cleaning services through 20 or 30 different companies to take advantage of the Employers NI rebate and the advantages of FRS whilst staying under the £250k per company threshold. Clearly services are just as valid a cost for a small business as physical materials, and no-one, not even HMRC, could think otherwise. However, I'd imagine that if services were allowable towards the "relevant goods" then we'd see avoidance through a matrix of small companies cross-charging each other to the extent necessary for the FRS to still be worthwhile, and that's why the slightly odd definition for allowable costs has been adopted.
All a bit academic, I guess.Comment
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