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Previously on "Simple VAT Question"

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  • Ardesco
    replied
    Originally posted by ASB View Post
    I certainly won't be, I just just a bit worried that the guy who asked "are these supplies to a US client exempt" might. There isn't an absolute certain yes answer.
    If he is supplying code it can be classified as eCommerce. If his customer is a US resident living in the US there should be no issue.

    http://customs.hmrc.gov.uk/channelsP...yType=document

    See the above link for some more detailed info.

    Leave a comment:


  • ASB
    replied
    Originally posted by Ardesco View Post
    Do double check everything though, you do not want to fall foul of the VAT man.
    I certainly won't be, I just just a bit worried that the guy who asked "are these supplies to a US client exempt" might. There isn't an absolute certain yes answer.

    Leave a comment:


  • Ardesco
    replied
    Originally posted by ASB View Post
    I'm sure you are right for your circumstance but is it as absolute as that?

    Are there not some cases where the services could be classed as digitised product and as such the places of supply is potentially the UK [depending upon what the product is] ?

    It may be that because the customer is outside the EU this can never apply under any circumstances, but it can certainly apply with an EU based customer.
    You would have to double check with your accountant, Generally speaking supplying to somebody outside Europe won't be caught by VAT, but there are exceptions. For example you can't supply a UK based company something outside Europe (i.e. send it to their US office) without paying VAT as that would be seen as getting around the legislation. I believe that various products are not except either. Generally speaking services should be OK.

    Do double check everything though, you do not want to fall foul of the VAT man.

    Leave a comment:


  • ASB
    replied
    Originally posted by Ardesco View Post
    http://customs.hmrc.gov.uk/channelsP...ument#P32_3456

    May help clear it up a bit.

    As an example I sell some web hosting as part of Plan B. One of my customers is in Canada so I do not charge her VAT because I am supplying a service to somebody who is outside the EU and she is not liable for VAT.

    Hope this helps.
    I'm sure you are right for your circumstance but is it as absolute as that?

    Are there not some cases where the services could be classed as digitised product and as such the places of supply is potentially the UK [depending upon what the product is] ?

    It may be that because the customer is outside the EU this can never apply under any circumstances, but it can certainly apply with an EU based customer.

    Leave a comment:


  • Lewis
    replied
    Originally posted by swedstar
    Hi,

    I've got my own limited company and is planning to start working as a contractor in a month time. I've got a couple of questions related to IR35 and contracts.

    * When do you know the IR35 status of your contract? Accountants seem to be asking what the current status of the contract is which means you must know this when you start. I hope I don't have to involve some legal expert every time I'm going to get a new contract. Do recruitment agents advice (probably not)?

    * I'm a permanent employee (1 year) but is soon leaving my job. Now my employer might be interested in using me as a contractor for a couple of months. Ideally I don't want to be caught by IR35 and therefore some people seem to recommend involving a recruitment company as a middle man as an option (of course they will take their cut of the cake). What do you recommend as the best option for dealing directly with companies? involve a legal expert?

    * I sent out an invoice a while ago for a server installation I did. No contract was involved more than the employer agreed to pay me per hour for the service. I billed them for 15 hours of work. Now my accountant is asking me for the IR35 status of this invoice. How do I find out?

    Thanks
    Swedstar
    You should start a new thread for this not tag it at the end of this VAT thread.

    Leave a comment:


  • Lewis
    replied
    Originally posted by Archangel View Post
    My question regarding accountants and the VAT ("does yours") was a little obscure, my accountant would do the VAT return, but I don't pay him to do it, I do it myself (incorrectly it would seem). I've been using the same accountant for 20 years, originally he did everything, then I gradually took over everything except the yearend.
    Well, he who makes no mistakes makes nothing at all. Live and learn, at least you can correct it now. Plus you can still do your returns yourself, but probably best to get his/her advice on how best to correct the error.

    Leave a comment:


  • Archangel
    replied
    Originally posted by Lewis View Post
    Apologies, no offence intended, I made an assumption that your were doing you own forms and therefore had no accountant to do them for you. Although having no accountant is not an insult!

    But really we are just going to have to agree to disagree on this, I'm not going to change my practices or go against my accountant based on what you are saying. Plus do you not think it odd that nobody else agrees with you on this forum. Either we are all doing our forms wrong or you are.

    With regards to HMRC. Sounds like you were given dud advice.

    My advice, for what it's worth, call your accountants, explain the situation and ask their advice. Even if they don't do your returns, if they aren't helpful go somewhere else. People here will happily recommend an alternative firm for you starting from around £60+VAT per month for a full service including VAT returns.

    Yes, my accountants do VAT returns and I would expect all accountants to do them also. As it happens, I sometimes do mine myself when there are postal strikes etc. But I got advice on how to complete the form first.
    My question regarding accountants and the VAT ("does yours") was a little obscure, my accountant would do the VAT return, but I don't pay him to do it, I do it myself (incorrectly it would seem). I've been using the same accountant for 20 years, originally he did everything, then I gradually took over everything except the yearend.

    Leave a comment:


  • Archangel
    replied
    Originally posted by Ardesco View Post
    It doesn't say sales turnover, it says



    How is interest that the bank gives you a supply that your business makes?
    I agree (finally!), I am doing it incorrectly.

    Leave a comment:


  • r0bly0ns
    replied
    Originally posted by Archangel View Post
    Your suspicion is wrong (and a little offensive TBH) I do have an accountant (although he doesn't do the VAT, I do, does yours?). My information came from the VAT helpline (although "they" would say that wouldn't they). I am not convinced by your argument that my company does not supply the Bank Interest, as if I were a newsagent I would not supply the Lottery Commission, but this would have to be counted. What exempt supplies do you think would be counted?
    Yes you would, you would be supplying the service of selling their tickets for them.

    Leave a comment:


  • Lewis
    replied
    Originally posted by Archangel View Post
    Your suspicion is wrong (and a little offensive TBH) I do have an accountant (although he doesn't do the VAT, I do, does yours?). My information came from the VAT helpline (although "they" would say that wouldn't they). I am not convinced by your argument that my company does not supply the Bank Interest, as if I were a newsagent I would not supply the Lottery Commission, but this would have to be counted. What exempt supplies do you think would be counted?
    Apologies, no offence intended, I made an assumption that your were doing you own forms and therefore had no accountant to do them for you. Although having no accountant is not an insult!

    But really we are just going to have to agree to disagree on this, I'm not going to change my practices or go against my accountant based on what you are saying. Plus do you not think it odd that nobody else agrees with you on this forum. Either we are all doing our forms wrong or you are.

    With regards to HMRC. Sounds like you were given dud advice.

    My advice, for what it's worth, call your accountants, explain the situation and ask their advice. Even if they don't do your returns, if they aren't helpful go somewhere else. People here will happily recommend an alternative firm for you starting from around £60+VAT per month for a full service including VAT returns.

    Yes, my accountants do VAT returns and I would expect all accountants to do them also. As it happens, I sometimes do mine myself when there are postal strikes etc. But I got advice on how to complete the form first.

    Leave a comment:


  • Ardesco
    replied
    Originally posted by Archangel View Post
    Could you please give me a link to your information re sales turnover?
    It doesn't say sales turnover, it says

    6.2 What must I include in my flat rate turnover?
    Your flat rate turnover is all the supplies your business makes, including VAT.
    How is interest that the bank gives you a supply that your business makes?

    Leave a comment:


  • Archangel
    replied
    Originally posted by r0bly0ns View Post
    Sorry, my mistake, it is Turnover you report in an FRS return not just sales


    However as the others have said, its sales turnover and not company turnover. I.e. all the turnover assiciated with making a sale (Invoiced amount + VAT amount) and not the non sales turnover associated with running a business (bank interest, CT early payment cheques tax rebates etc...).
    Could you please give me a link to your information re sales turnover?

    Leave a comment:


  • Archangel
    replied
    Originally posted by Lewis View Post
    Your company has not supplied the Bank Interest to anyone. Honestly, you should speak to your accountant, but I suspect you don't actually have one, which is why you are in this situation. If I was you I would get one quickly, I am sure you can make an adjustment to your future VAT returns to remove the bank interest you have obviously included already. I don't really want to devote any more time to this, unless you are saying you are either (a) an accountant or (b) have been told this by your accountant, in which case I am prepared to consider it some more despite me being convinced you are wrong.
    Your suspicion is wrong (and a little offensive TBH) I do have an accountant (although he doesn't do the VAT, I do, does yours?). My information came from the VAT helpline (although "they" would say that wouldn't they). I am not convinced by your argument that my company does not supply the Bank Interest, as if I were a newsagent I would not supply the Lottery Commission, but this would have to be counted. What exempt supplies do you think would be counted?

    Leave a comment:


  • r0bly0ns
    replied
    Originally posted by r0bly0ns View Post
    I have highlighted the key wird there - turnover.

    Turnover is used when assessing your eligiablity to join the FRS, it is not used on a VAT return.
    Sales are used on a VAT return.

    Turnover includes bank interest, sales does not.
    Originally posted by Archangel View Post
    Not for flat rate VAT, it is turnover you use, I quote:

    "The turnover to which you apply the flat rate is all that you receive including the VAT."


    <snip>

    Sorry, my mistake, it is Turnover you report in an FRS return not just sales


    However as the others have said, its sales turnover and not company turnover. I.e. all the turnover assiciated with making a sale (Invoiced amount + VAT amount) and not the non sales turnover associated with running a business (bank interest, CT early payment cheques tax rebates etc...).

    Leave a comment:


  • Ardesco
    replied
    Originally posted by Lewis View Post
    Your company has not supplied the Bank Interest to anyone. Honestly, you should speak to your accountant, but I suspect you don't actually have one, which is why you are in this situation. If I was you I would get one quickly, I am sure you can make an adjustment to your future VAT returns to remove the bank interest you have obviously included already. I don't really want to devote any more time to this, unless you are saying you are either (a) an accountant or (b) have been told this by your accountant, in which case I am prepared to consider it some more despite me being convinced you are wrong.
    Just to echo this one, bank interest is definitely not something that you supply, therefore is not taken into account.

    Leave a comment:

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