Advise regarding concierge Business?

 

 

Hello all. Just stuck on a tricky situation and donot know how to proceed.

 

A cleint is looking to set up a concierge service, run via a Ltd.

The company arranges, butlers, housekeepers, buys good for them, food, chauffeur service etc for clients and bills them at the end of the month.

 

The problem that has arisen is that one of the clients want to prepay £60,000 and then wants them to deduct the invoices from that.

 

1. Is this allowed? How can this be worked around in the business, if they took this payment?

2 Is there any potential future VAT issues, if you have taken £60k prepayment and approaching the registration Threshold.

3. What would the be the correct way of handling this type of issue.

 

Thanks in advance for your help.

 

Manzar

 

Comments
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Payment

davidwinch |
davidwinch's picture

Wish I had a client willing to pay me £60k in advance!

Hansa |
Hansa's picture

Thanks for the advice. Very

manzar |

VAT time of supply - tax point

davidwinch |
davidwinch's picture

I've never thought of myself as a VAT expert, but ....

petersaxton |
petersaxton's picture

... but IS it an advance payment?

Hansa |
Hansa's picture

I disagree

petersaxton |
petersaxton's picture

Solicitor's client account

davidwinch |
davidwinch's picture

Not involved

petersaxton |
petersaxton's picture

@Peter

davidwinch |
davidwinch's picture