Autumn Statement 2016

[PurpleGorilla]

And that £10 inc. VAT you just spent on lunch has wiped out your flat-rate surplus for the day.

You put your lunch through on expenses!!!?

[TheCyclingProgrammer]

You put your lunch through on expenses!!!?

Yes, 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.

[adubya]

You put your lunch through on expenses!!!?

Don't you ?

[GB9]

Yes, 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.

Indeed. Another minor tax claw back for hmrc.

[MarkT]

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)

[riffpie]

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)

I.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?

[TheCyclingProgrammer]

So working this VAT thing through - where does it say accountants, IT equpiment for your business, stationary and the like aren't included?

https://www.gov.uk/government/public...technical-note

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 ?

Very unlikely I spend that much on *goods*. I do spend more than that on other things.

Can't really see where is excludes train fares and taxis either?

More services.

[eek]

I.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?

2% of revenue every quarter. So for me £600-800 worth...

[riffpie]

2% of revenue every quarter. So for me £600-800 worth...

Are you issuing invoices on gold leaf or something?

[TheCyclingProgrammer]

Accounts would be a service, although I'm unsure if they're excluded simply because the word "goods" is used.

Whilst nothing is ever 100% certain until the actual legislation is in front of us, its unlikely that the use of the words goods is intended to mean anything other than what it says it is. The words goods and services have very specific meanings when we are talking about VAT.