Paying accountancy fees upfront - VAT implications?

[Rafd]

Hi all

Someone here pointed out that when forming a new Ltd it makes sense to ask to pay the year of accounts up front and reclaim VAT prior to flat rate registration. I have spoken to two different accountants and received conflicting advice on whether this is allowed. One said it was fine, the other said that as the services are rendered throughout the year it was not possible. Any thoughts on this?

[northernladuk]

IMO just pay your accountant like normal and get on with more important things.

[SueEllen]

You need a VAT invoice to claim VAT back so if the accountant doesn't invoice you can't claim it.

[Rafd]

Got some spare time on my hands and 10 mins of looking into this could save me £200 so seems good value.

As a follow up question I have also had directly conflicting advice on a couple of other points:

a) I will work from an office in my rented flat. One accountant said a portion of the rent is an allowable expense, the other said no, only a portion of the bills is allowed.

b) Allocation of some shares to my partner (not married) is ok if she has an interest in the company e.g. she does the book keeping. One said yes, one said no.

So much for the "ask your accountant" response so often given here!

[Dan @ SG Accounting]

Hi Rafd

The important part here is the "tax point" of the transaction as the invoice date is not always the same.

https://www.gov.uk/vat-record-keepin...y-or-tax-point

Dan

[Rafd]

Hi Rafd

The important part here is the "tax point" of the transaction as the invoice date is not always the same.

https://www.gov.uk/vat-record-keepin...y-or-tax-point

Dan

Thanks Dan, I guess that means they just weren't prepared to invoice me up front for some reason. Seems strange as some accountants actually give you a discount for up front payment!

[Rafd]

re the use of home as office: Contractors’ Questions: How much to claim for my home-based office? :: Contractor UK

It does say there are two schools of thought. Sounds like a bit of a grey area which would 'probably' be fine.

[northernladuk]

Are these the same two accountants? Are they both big names in the contractor field? Is it the same one that says yes to everything I.e. has a much lower risk threshold than the other.

[MrMarkyMark]

Got some spare time on my hands and 10 mins of looking into this could save me £200 so seems good value.

Looks like it is taking a lot longer than 10 minutes.

Your company will save £200, not you.
As others have said, get on with something more important instead.

[Rafd]

Both accountants are used by people on here I think and appear to specialise in contractors.

Accountant A says no to upfront invoice, yes to partner shares, no to home office. Accountant B says yes to upfront invoice no to partner shares, yes to home office. So mixed up responses with regard to risk.