EddScott

So, without incriminating yourselves, what do you put into your VAT returns?

Absolutely everything on the basis the accountant will sort it all out?

Only those items required for the day to day running of your business?

For example - as wifey offers tea, coffee and juice to client in her salon we've discovered we are eligible for the local Bookers. Do you put everything on the one bill or seperate them?

Another example - wifes car needs new rear brake calipers. She doesn't do mobile but uses the car to go to the wholesalers. Can the repair bill be added as part of the VAT?

We are partners not a Limited Company.

mamoon2

We seperate the items from a wholesalers... i.e. put the tea and biscuits on but not the box of nappies you may have just bought

As for the brake calipers, do you claim fuel? The brake calipers could quite easily be for your van/work vehicle

If you have an accountant i'd suggest just giving him everything and letting him sort it.

mamoon2

Oh and by the way, Bookers is one of the sh1ttest cash and carry's. Costco is where you wanna be, have a look to see if you have one local

David Lock

Don't overdo it is the rule. Try and sort it as best you can before sending to accountant. Just claim for the coffee etc and perhaps she also buys cleaning materials and pays a window cleaner? And newspapers for clients to read? Usually she would draw out of petty cash for these items.

There may be some stuff at home like use of phone for business or a PC used for business along with general office products? Does she have a website? If so costs of this can be included.

As for the car you could give the accountant approx mileage per year and include a repair bill in VAT return but make sure accountant has copy of Invoice.

Does she accept Credit Cards? CardSave will give her a very good rate.

You will find VAT office very helpful if you have a genuine question about what you can claim.

Don't pay late is another rule!!

dl

Lee247

This should help, Edd. Think the rules are the same, no matter if you are limited or not.

http://www.hmrc.gov.uk/vat/managing/...ng/reclaim.htm

David Lock

And check with your accountant whether they offer insurance against a tax investigation. I had one of these years ago when tax man claimed I owed several thousands. It was a nightmare but after two years I paid them £200 and it was over. But the insurance gave me a tax expert to help me through. dl

hodgy0_2

I claimed the VAT back on a set of Windsurfing Sails (about 100 odd quid) -- sort of relevant to the business I was running at the time.

The VAT inspector gave me a knowing look, but let it go -- although I think the look was "this time sunny jim -- but don't push your luck"

StickyMicky

Any basic car stuff, petrol receipts, anything office related (home or work, and includes my home PC gaming rig but it does get used for home office use though) and anything cleaning or diy/maintenance related (like tins of paint etc etc)

But that is pretty much it, i could put more through, but i would rather not push my luck, my mate has put Motec ecus through and other various dodgy purchases.

We have a local cash and carry that supply's all then local corner shops, so i called in and explained that i was thinking of adding a small store to sell bottles of coke and such, which to be fair, i was actually going to do, got an account, and went on a total booze binge with 90quids worth of purchase

EddScott

See now I was going to say - what if you had a scoob and the engine went. You get a tuned engine fitted for £4K and claim the VAT back. The ECU fails so you buy a Motec ECU.

For training sessions for the stylists they need to view the training DVDs on a 50" Plasma

All seems a bit of a wheeze to me?

StickyMicky

Maybe, but he never, he just bought a load of performance parts like a full blitz exhaust system i put my last scooby engine build through, which so happened to be a 2.5 conversion at the same time, but it was done with a brand new bottom end, which had its own invoice, the ecu i bought off a mate and mapped myself, so that was not really dodgy IMO.

Neanderthal

iTrader: (6)

If you put things through to get the VAT back, do you also put the rest through as business expense rather than taxable income?

Simon K

Im a VAT registered Limited company ( contractor ) and when I first started used to claim back everything I could.

However, if you look at what you exactly saving in regards to tax / vat on purchases, then for me its not worthing the possiblity of a VAt / Tax / IR 35 insepction, which would cost ££££££££££££. Obviously I claim back VAT on high end stuff and legit items, but for `grey` areas like this, dont bother now.

It seems nothing is black and white in the tax world, and I know other contractors that do claim for 50" screens as company expensives, but if you get a moody inspector on your case, then this one purchase could then open up a whole can of pain.

So, like the others suggested, dont take the mickey, and be sensible. I bet if you add it up after a year, what your saving isnt big bucks.

SBK

bigsinky

Jaysus, Mary and Joseph. Edd you are a right dodgy bastid

EddScott

Well the HMRC website does state you can claim for repairs if the car is used "to some extent" so I assume going to the wholesalers counts. As its her only car then I think its justifiable - we aren't going to claim fuel as the wholesalers is only a few miles away so not really on to put in a £50 fuel bill!

I'm only going to put through those things that I feel can be justified. Not big plasmas but we are fitting a few small TV monitors to show hair designs. I did ask our accountant if I could put the bill for the LPG conversion through on my Jeep and he won't give me a straight answer (clearly one of those grey areas) so I'm not going to.

LOL - the people who owned the salon before us put every single bill home and work through the salon. All the phone bills, not sure on utilities but fuel, electrical goods, food. They were a Limited company though which I think makes a bit of difference. One reason it took so long to buy the place off them was due to their creative accounting.

Steve001

iTrader: (7)

office refreshments tea, coffee,milk, sugar etc you dont claim the vat back as far as i know. Bottles of booze (sundry items at xmas) are 'thankyou handouts' for valued customers, but again dont over do it

as for the 50" plasma, if you get an inspection make sure its in the work place at the time. only claim once in a while unless you can justify 3 TV's, blueray player, 4 laptops etc etc

claim on stuff YES push you luck NO