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Management charges, golf clubs, a reminder for business owners and a shameless plug…
Chances are you already get lots of updates about VAT from your professional publications. So this isn’t a newsletter, but my comments about some topical issues and why business owners MUST review their VAT returns. And there’s also a completely shameless plug for my ebook about VAT and residential property development!
Golf club VAT claims
Those of you whose clients include golf clubs are probably aware that HMRC have invited clubs to submit claims for overpaid VAT on green fees from non-members, which have been ruled VAT exempt. At first glance, this seems like good news but unfortunately, it’s not that simple, because the “unjust enrichment” rule means that most clubs won’t be eligible to claim overpaid VAT unless they refund it to their customers.
However the change in liability also creates problem because the backdated change in liability will affect how much VAT on costs clubs can recover. Some clubs may find themselves having to repay VAT claimed on costs during the past 4 years. Find out more http://tinyurl.com/ousz7o7 and contact me if you need any help with clients who may be affected.
And here’s the shameless plug…
One of the main problems with VAT and property is that developers often don’t think about VAT until they start incurring costs or even before buying a property or site. But if you want to avoid expensive VAT mistakes, then you need to incorporate VAT into your budgeting, right from planning the project.
So the shameless plug is about my ebook “VATWoman’s Guide to VAT and residential property development”. Whether you’re a property developer, contractor, DIY housebuilder/converter or a professional advisor, accountants, solicitors, architects, surveyors, you’ll find this book an invaluable guide to help you deal with VAT right through the process, from initial funding right through to completion and beyond.
To find out more, check out the details on https://vatexchange.co.uk where you’ll find more information, including a detailed contents section. And if you’d like to see a free and no-obligation 20 page preview , email me marie@vatexchange.co.uk
Payments between associated businesses
More often than not, payments between associated businesses represent payment for goods or services, such as shared office costs or management services and are liable to VAT. Either way, these payments can cause a lot of confusion, but it’s one of the areas where HMRC often find mistakes. So how do you avoid this? The first thing is to correctly classify the reason for the payment and THEN you can work out the VAT liability – see my article http://tinyurl.com/24pubh7 where I’ve explained the main principles and where to find more detailed information about payments between associated businesses.
New online consulting for one-off queries: £77+VAT per hour
Need help with a VAT query? You’ve tried HMRC’s VAT helpline but you’re still confused.
You can put your query on our VAT forum https://vatexchange.co.uk/forum and I’ll do my best to help free of charge, or you can contact me marie@vatexchange.co.uk if you want formal advice.
But what if you need something inbetween – more than you’ll get on a forum but you don’t want to commit to detailed, formal advice.
I’m pleased to introduce our new one-hour service for just £77+VAT. This service is designed for one off queries to provide outline guidance about your query, including a written summary. See http://tinyurl.com/qet3xdl for more information.
And don’t forget, our special rate for accountants, bookkeepers and other professional advisors – see http://tinyurl.com/p4j27op for more details.
Why business owners MUST review their VAT return before they are submitted
I’ve recently dealt with a very frustrating situation where a company owner and director has to pay in excess of £15,000 VAT after his accountants submitted an incorrect VAT return.
HMRC contacted him on several occasions during the few months after the return was submitted, giving him several opportunities to amend the return. But he didn’t bother. And HMRC didn’t chase him for payment until about 7 years later, when it was too late to amend the return. Now he’s left paying costly monthly installments for zero-rated work on which he didn’t charge VAT.
If you’re a business owner, remember that it’s your responsibility to submit correct VAT returns, even if you’re paying someone else to calculate the figures and submit the return on your behalf. Don’t end up having to pay too much VAT because you didn’t take the time to check the figures yourself.
In the meantime, I hope that you’ve had a good summer and that business prospects for the next few months are looking good. Remember to use the VAT forum https://vatexchange.co.uk/forum or contact me http://marie@vatexchange.co.uk if you need help with any VAT issue.
Marie
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