Autumn Statement 2016

[riffpie]

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.



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



More services.

Travel and subsistence isn't *NOT* a service.

[PurpleGorilla]

Don't you ?

No.

Cake is VAT exempt ;-)

[TheCyclingProgrammer]

Travel and subsistence isn't a service.

I'm not sure in what way travel (or accommodation) could be considered goods. You're paying for a service.

Subsistence is generally going to be a purchase of goods - usually food and drink costs - but these are explicitly excluded anyway.

[barrydidit]

Travel and subsistence isn't a service.

It's generally crap service, but unless you're keeping the train you travelled on then yes it is.

[MarkT]

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.



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



More services.

Certainly don't spend that much on stationary - however IT hardware & software, yes. Begs the question whether all IT purchases have to be treated as a capital expense...

[riffpie]

It's generally crap service, but unless you're keeping the train you travelled on then yes it is.

Fair enough. Edited.

[TheCyclingProgrammer]

Certainly don't spend that much on stationary - however IT hardware & software, yes. Begs the question whether all IT purchases have to be treated as a capital expense...

I generally treat hardware over a grand as a capital expense. I used to treat lower cost hardware (phones mainly) as capital expense but I don't anymore. I don't buy hardware that often though.

I suppose if you want to be cynical about it, treating hardware purchases as non-capital expenses as a way of avoiding the new FRS rate may welcome unwanted attention from the VAT man though I don't know what criteria they would use for determining if something had been treated as an expense when it should have been capital

Regarding software...if you're buying it and receiving it as a digital download it is treated as a service. Only old-fashioned off-the-shelf software on physical media counts as a good.

[riffpie]

I generally treat hardware over a grand as a capital expense. I used to treat lower cost hardware (phones mainly) as capital expense but I don't anymore. I don't buy hardware that often though.

I suppose if you want to be cynical about it, treating hardware purchases as non-capital expenses as a way of avoiding the new FRS rate may welcome unwanted attention from the VAT man though I don't know what criteria they would use for determining if something had been treated as an expense when it should have been capital

Regarding software...if you're buying it and receiving it as a digital download it is treated as a service. Only old-fashioned off-the-shelf software on physical media counts as a good.

This is so backwards. Stupid world.

[SueEllen]

Don't you ?

Depends where I'm working.

[OwlHoot]

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

If your accountant provides you with a hard-copy signed copy of your annual accounts, that should count as "goods" surely.

May sound absurd, but if that is how one must game the system so be it.