VAT Flat Rate Scheme Update

[SueEllen]

I totally take your point, however, I've just trawled through VAT Notice 733 and there is no mention of hotels or accommodation at all (apart from rent). I just find it odd as this must be one of the most commonly claimed expenses.

The wording in VAT notices requires you to use your common sense.

So if you can work out it is a service or capital expenditure then it is excluded.

[SueEllen]

I've given detailed replies, multiple times, on pretty much every thread on this topic (and so have many others), so how about you do one and use the search function.

If you can't even work out the difference between a good and a service, then perhaps VAT is too complicated for you and you should just come off it and keep your turnover below the threshold.

You are going to get accused of being rude.

Then be told you wouldn't say that face to face.

However to the poster who asked that question - "Yes he would say it face to face and he would use very rude body language questioning your IQ"

[adam2008]

So far it's clear that capital expenditure, for example, a printer doesn't count, travel and subsidence doesn't, motor expenses doesn't -

but stationary does (as doing more work you print more, send more letters etc) are these no general admin and not cost of sales?

Do hotels? (as doing more work you'd spend more on hotels? or are these Travel and Subsistence CP34 and the category "General administrative expenses" thus not cost of sales?)

Phone bills? (as doing more work you'd make more calls? or are these Admin/office expenses under CP36 and the category "General administrative expenses" thus not cost of sales?)

Buying and re-selling something unrelated to the business? (does it need to be related?)

[TheCyclingProgrammer]

For the millionth time, hotels and phone calls are services, not goods.

[Alan @ BroomeAffinity]

For the millionth time, hotels and phone calls are services, not goods.

You're showing remarkable restraint. Chapeau.

[radish2008]

I've given detailed replies, multiple times, on pretty much every thread on this topic (and so have many others), so how about you do one and use the search function.

If you can't even work out the difference between a good and a service, then perhaps VAT is too complicated for you and you should just come off it and keep your turnover below the threshold.

Maybe you should wind your neck in a bit.

[SueEllen]

Maybe you should wind your neck in a bit.

As I predicted.

Ever heard of the saying - "if you give a man a fish he is hungry again in an hour. If you teach him to catch a fish you do him a good turn"

Hence if you cannot work out what is a good and service then you shouldn't be calculating VAT for yourself and should be talking to your accountant. Even then as your accountant is not your company's financial advisor then perhaps contracting is too complex for you.

[Alan @ BroomeAffinity]

VAT Flat Rate Scheme Update

Don't really understand your point about the company let.

What i should have said is residential property rent is exempt from VAT so there's no VAT to reclaim whether you're renting through company or not.

If it's a short term airbnb or serviced apartment type rental, then refer to my initial post.

[d000hg]

It seems like as a fairly safe bet if the answer to "can you hold it in your hand?" is "no" then it's probably a service not a good? That doesn't mean the converse is true but it does provide a first stab at eliminating things.

Maybe a flow-chart would help make this clearer, if there isn't one already. That would be great in a sticky.

[RonBW]

As I predicted.

Every heard of the saying - "if you give a man a fish he is hungry again in an hour. If you teach him to catch a fish you do him a good turn"

Give a man a fish and he'll be hungry again later. Teach a man to fish and you do him a good turn. Teach a Spaniard to fish and he'll claim all the fish caught in British waters are his and were caught legally but at least after Brexit we will be able to reclaim our British waters again.