A sub-postmaster's remuneration is paid by the Post Office Ltd based on a core tier and a variable element for different levels of different transactions.
How is this affected by VAT?
Thank in anticipation !
Replies (7)
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Some are, some are not
Some transactions require vat, some don't. What an odd question. Am I missing something here? Is this what you intended to ask?
Don't apply yet
Doesn't he want to know the exact financial return he's going to get before applying?
Ask
"So why deduct NI (and pesumably not PAYE as it's not mentioned?) but include VAT ???"
It certainly doesn't make sense to me although I have no experience of accounting for Post Offices. Isn't it best to ask the Post Office?
Remuneration and Reimbursement
The VAT mentioned may be to cover the VAT that the shop loses out on by hosting a subpostoffice.
Most retail shops registered for VAT will be able to recover all the VAT they incur i.e. not only on stock, but also overheads, security, capital works etc.
However a subpostoffice is only used partly for the business purposes of the registered entity, and partly for their non-business purposes and so VAT recovery is restricted. So say Joe Bloggs is a retailer (VAT reg sole trader) and a postmaster, they fit a post office counter, or get a new safe for putting the postal order in - no VAT recovery as the cost is not incurred as part of their taxable business, but is instead incurred in the course of their salaried job as a sub postmaster, which is a non-business activity. Likewise when they pay the electricity for the shop, this electicity goes to both the subpostoffice bit and the shop and so should be split accordingly for VAT recovery.
Hosting a subpostoffice can be quite a complex and expensive affair for a retailers VAT accounting.