VATWoman’s Guide to inter-company services, management charges, cost sharing and much more…
Dealing with VAT on transactions with associated businesses
Now available!
“Can we claim VAT on our office costs and legal bills if we raise a management charge to our associated business?”
Do you know the answer to this question? What does “raising a management charge” mean in practice?
And how would you cope if HMRC refuses to pay a VAT claim including VAT on supplies from associated businesses?
My new e-book explains why it’s now even more important that transactions between associated businesses are carried out in a proper commercial manner, whether it’s the VAT liability of a management service or when you can claim VAT on related costs, whether you’re an SME or a large international businesses.
HMRC is now disallowing claims for VAT on services from associated companies if they do not have definitive proof that the supplies have been made. Many start-up businesses rely on cashflow from VAT repayments to fund their development, so if HMRC refuse to pay the VAT, these businesses can end up becoming insolvent. Not only do they lose the VAT that you’ve claimed – which could be thousands of pounds, but they also must deal with the hassle and inconvenience caused by the delays, never mind the cost of professional fees to get it all sorted out.
Appealing against HMRC’s decisions can take months, especially if you have to appeal to the Tax Tribunal and many businesses simply don’t have access to the funds needed to survive such a long delay or to pay professional costs.
HMRC will also review the VAT accounting of associated businesses and withdraw permission for the use of monthly VAT returns, cash accounting and other helpful VAT schemes that they believe are being abused.
So how do you ensure this doesn’t happen to you, or to your client?
The book is a practical guide that explains WHEN you can raise a management charge and when you can claim VAT on related costs. It explains HOW to minimize VAT costs and WHAT you need to do to ensure that arrangements with associated businesses are made on a commercial basis.
The book covers a range of the most common subjects, including when you can claim VAT on costs; what is a “management charge”; why you have to demonstrate that services have been provided; how to deal with VAT on charges to associated businesses on routine expenditure, such as rent and motoring costs; international charges and much more.
The book is available for the introductory price of £27 plus VAT (£32.40). Offer now extended.
Normal price £37 plus VAT.