His mother will need a car to bob about in surely?
Porsche GT3 RS? Why not get HMRC to deliver it to her, they love doing that.
qh
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Even better if he pays his dad and other elderly relatives to build it.Originally posted by Old Greg View PostLeave a comment:
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And let his mum live in rent free to demonstrate to potential customers that you can live in a house?Originally posted by Old Greg View Post
I like your thinking.
.... have we finished taking the P*ss yet?Leave a comment:
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Can't he just go the whole hog and claim the mortgage as a business expense?Originally posted by Old Greg View PostLeave a comment:
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Putting aside the fact that it looks like a blatant tax scam. It's not an original idea and common to popular belief HMRC aren't stupid. They are in fact quite brutal as many contractors and small businesses can testify.
There are a other flaws with the scheme.
Firstly you'd have to set-up a VAT registered company, open your company. This has a cost. In time and money. Not only would you then need to supply VAT submissions every quarter but you'd have to submit your company accounts. £1k a year on accountancy costs is probably towards the low end. I spend roughly £2k a year on accountants.
So you'd most likely end up spending most or all your "saving" on accountancy fees.
And a "VAT" refund counts towards your companies operating profits. So it's taxable as normal.Leave a comment:
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To be a business expense it needs to be wholly and exclusively for the purpose of the business. Installing it in your mother’s house is not that.Leave a comment:
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Forming Ltd company - kind of Dormant
I'm looking to form a Ltd company which will have 2 sides to it, 1 IT Contracting (Networks and Security) the other Smart Home/Smart Business. I'm currently in education and as such for the next 12 months all this company would do is buy an initial smart home's worth of equipment to setup and configure. This will reside at a relatives house (mother) who is happy for some customers to see it as a show home, where the equipment can be demonstrated to customers.
Mainly the kit will be Smart home controller, blinds, lighting, thermostat controls and related equipment. I'm just wondering how much of that equipment can legitimately be considered to be a business expense, essentially I will be setting everything up for my mother for nothing, learning about the technology for the purpose of running a Smarthome company.
I had hoped that everything related to the smart home products could go through the books, claim the VAT back as all of it is basically for the test ground which is her home and will also be a show home.
Can this extend to robo hoovers/ i mow mowers..... and garden irigation to show off to customers.... ??
I wonder about the accounts for the company, as it's essentially NOT trading....just setting up supplier accounts for the first year and learning how to professionally setup the equipment..
Would really be grateful for input on this, I dont want to be in the situation of being told by HMRC what I have done (or hope to do) is wrong....
Many thanks,
M
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