question on TOMS re registration

question on TOMS re registration

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small tour companty been trading for 3 years year end 31st July last year well under treshhold

registered for VAT 1st March 2013 when turnover was £380k and expected margin about £60k

i note that you can account for margin vat either when funds are received or date of departure

if we use later method we will have to pay vat on whole years margin (as tour started at end of March) if the former presumably only on monies recived after registration

i read that accounting on cash received date is unusual ( this is completely diff to normal vat rules remember)

any advice or comments on this tricky situation

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chips_at_mattersey
By Les Howard
17th Jul 2012 22:22

TOMS

assuming the March 2013 date is correct, the 'advantage' you have gained is due the fact that you receive money before the trip, not after it. In respect of any trip paid before March 2013, but finishing after March 2013, there is no output tax due.

Does that make sense?

Do make sure you write a covering letter to HMRC to explain, so as to avoid a nasrt surprise later!

 

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By carnmores
19th Jul 2012 14:17

it makes perfect sense thanks a lot

i am writing to them anyway and yes i will include that exact point

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