Originally posted by TheCyclingProgrammer
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Autumn Statement 2016
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Originally posted by PurpleGorilla View PostYou put your lunch through on expenses!!!?
I may not reclaim the VAT on them when I move to the standard rate scheme - it depends if I can be bothered trying to get a valid VAT receipt. But I can still put them through expenses.Comment
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Originally posted by PurpleGorilla View PostYou put your lunch through on expenses!!!?Comment
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Originally posted by TheCyclingProgrammer View PostYes, because subsistence related to business journeys or travel to a temporary work place is an allowable cost. Why wouldn't I?
I may not reclaim the VAT on them when I move to the standard rate scheme - it depends if I can be bothered trying to get a valid VAT receipt. But I can still put them through expenses.Comment
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So working this VAT thing through - where does it say accountants, IT equpiment for your business, stationary and the like aren't included?
Say your turnover is £150k - you don't spend more than £3k on these things ?
Can't really see where is excludes train fares and taxis either?
A limited cost trader will be defined as one whose VAT inclusive expenditure on goods is either:
less than 2% of their VAT inclusive turnover in a prescribed accounting period
greater than 2% of their VAT inclusive turnover but less than £1000 per annum if the prescribed accounting period is one year (if it is not one year, the figure is the relevant proportion of £1000)
Goods, for the purposes of this measure, must be used exclusively for the purpose of the business but exclude the following items:
capital expenditure
food or drink for consumption by the flat rate business or its employees
vehicles, vehicle parts and fuel (except where the business is one that carries out transport services - for example a taxi business - and uses its own or a leased vehicle to carry out those services)Comment
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Originally posted by MarkT View PostSo working this VAT thing through - where does it say accountants, IT equpiment for your business, stationary and the like aren't included?
Say your turnover is £150k - you don't spend more than £3k on these things ?
Can't really see where is excludes train fares and taxis either?
A limited cost trader will be defined as one whose VAT inclusive expenditure on goods is either:
less than 2% of their VAT inclusive turnover in a prescribed accounting period
greater than 2% of their VAT inclusive turnover but less than £1000 per annum if the prescribed accounting period is one year (if it is not one year, the figure is the relevant proportion of £1000)
Goods, for the purposes of this measure, must be used exclusively for the purpose of the business but exclude the following items:
capital expenditure
food or drink for consumption by the flat rate business or its employees
vehicles, vehicle parts and fuel (except where the business is one that carries out transport services - for example a taxi business - and uses its own or a leased vehicle to carry out those services)Comment
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Originally posted by MarkT View PostSo working this VAT thing through - where does it say accountants, IT equpiment for your business, stationary and the like aren't included?
Only expenditure on goods counts, and capital expenditure and employee food and drink costs are excluded. IT equipment - yes if its not treated as capital expenditure, stationary yes but how much stationary does the average contract spend their money on? Accountancy is not a purchase of goods.
Say your turnover is £150k - you don't spend more than £3k on these things ?
Can't really see where is excludes train fares and taxis either?Comment
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Originally posted by riffpie View PostI.T hardware would be capital expenditure. Accounts would be a service, although I'm unsure if they're excluded simply because the word "goods" is used. Stationery seems to be allowable, but how much of that do you buy? Is it 2% of your revenue?merely at clientco for the entertainmentComment
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Originally posted by eek View Post2% of revenue every quarter. So for me £600-800 worth...Comment
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Originally posted by riffpie View PostAccounts would be a service, although I'm unsure if they're excluded simply because the word "goods" is used.Comment
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