Simple VAT Question

[Hex]

There was another thread about this about 6 months ago which Nixon Williams contributed to.

As I recall there was a lot of confusion and not a lot of clarity. Apparently even HMRC were giving inconsistent information over the phone.

I seem to remember that one question was regarding whether bank interest is an exempt supply or, in fact, not a supply at all.

My accountant reckons you don't include bank interest.

[moorfield]

Bank interest not included on FRV calculations or quarterly returns. Can we go back to discussing Jaffa Cakes now - weren't they made of apricots once ?

[ctdctd]

Bank interest not included on FRV calculations or quarterly returns. Can we go back to discussing Jaffa Cakes now - weren't they made of apricots once ?

I don't like Jaffa Cakes. Can we talk about how you eat Custard Creams instead?

I eat the top biscuit and then nibble round the edges to try and be left with just the cream bit.

[moorfield]

Kitkats. Similar technique - nibble round the edges to just leave the wafer. Quite difficult getting the chocolate off the bottom side though (very thin).

[oracleslave]

[quote=ctdctd;461017I eat the top biscuit and then nibble round the edges to try and be left with just the cream bit.[/quote]

What he said.

[Ardesco]

Kitkats. Similar technique - nibble round the edges to just leave the wafer. Quite difficult getting the chocolate off the bottom side though (very thin).

Twix!

Nibble the choc off and then the biscuit and finally the chunk of caramel.

[d000hg]

Sorry to bring it back on topic guys...

Someone right at the start said that "everything" is subject to VAT. But Then someone else said "only money from the UK" and another person mentioned that not everything is subject to VAT.

My situation is that the majority of my income is from the US, in the near future it could move to a 60/40 split US and UK. I don't know the details of my UK client, whether he's big enough to be VAT registered.

So although a rate is already agreed with my UK client and VAT not mentioned, is it acceptable for me to suddenly ask for a 17.5% increase for VAT?

And, is income from outside the UK definitely not subject to VAT? Meaning that if all my clients were abroad, I could register for VAT to save on purchases/expenses without paying any VAT?

[ASB]

Sorry to bring it back on topic guys...

Someone right at the start said that "everything" is subject to VAT. But Then someone else said "only money from the UK" and another person mentioned that not everything is subject to VAT.

My situation is that the majority of my income is from the US, in the near future it could move to a 60/40 split US and UK. I don't know the details of my UK client, whether he's big enough to be VAT registered.

So although a rate is already agreed with my UK client and VAT not mentioned, is it acceptable for me to suddenly ask for a 17.5% increase for VAT?

And, is income from outside the UK definitely not subject to VAT? Meaning that if all my clients were abroad, I could register for VAT to save on purchases/expenses without paying any VAT?

In general you do not charge VAT on services outside the UK. It depends on a number of factors though. There was a thread recently but I can't find it.

[Gonzo]

Isn't there an upper cap on FRS? WIth my old Ltd I never bothered because I expensed a lot, all wholly and exclusively for the business of course.

With my new company, I am hardly expensing anything but I thought the turnover limit was around the £150K mark so I never bothered applying for it...

Yes turnover must be below £150,000 excluding VAT to be included on the FRS.

Which made me panic and double-check but it is OK, my rate does not quite get me there yet.

[Lewis]

Kitkats. Similar technique - nibble round the edges to just leave the wafer. Quite difficult getting the chocolate off the bottom side though (very thin).

I once had a freaky kitkat that had no wafer! It was actually quite tasty.