Are website development costs capital goods for VAT FRS?
We have a bit of a dispute with HMRC on the flat rate scheme and reclaiming input VAT outside of the scheme on capital items.
We are trying to reclaim the VAT on website development costs. The costs was well over the £2k minimum, and within all the other requirements as far as I can see.
HMRC have come back and disallowed it, sending me to looking at Chapter 15 of Public Notice 733, as well as Regulations 55E of VAT Regulations 1995.
From looking at these, I can see no example of why our capital item would be excluded - it falls within none of the 'exclusions' that these notices go through.
Neither of these publications though are clear on what is meant by the 'services' exclusion - does anyone have experience of this??
Secondly, if the VAT say it is not a capital item, can I then expense the item through the P&L (rather than in fixed assets where it is now) and reclaim corporation tax? Or can the VAT treatment and the accounting treatment be different?
- Profit accruing in fiduciary or representative capacity 155 3
- MS Surface Pro 3 124 2
- practice planning 69 1
- HMRC Penalties - are they enforceable? 1,102 37
- Child and Working Tax Credits and sudden increase in investment income - does this trigger a claw back? 171 3
- Anybody have that old ACCA Student Training Record (STR1) 152 1
- Question re Career choice... 1,647 10
- Which address 1,070 12
- Does anybody still use a Filofax? 599 20
- Financial statements in Word, with formulas 1,508 17
- Your fondest calculator memories 1,218 44
- R&D tax claim 258 7
- You think HMRC are inefficient? 544 9
- Company Pension Contributions 2013/14 206 7
- Gift to employee 387 12
- Tax Allowance on University Course 194 1
- Transfer of a business 131 1
- I hate HMRC's voice recognition system - The Inept Interrogator 1,168 22
- Investment property where tenant lives rent free 421 8
- VAT Cross Border Invoicing 127 2
- DTR : TIOPA 2010 Section 42 487
- CTA study material 459
- Sect 102 TMA 1970 337
- Pre incorp expenses 321
- Relief on French Tax Deposit? 271
- Anyone have clients that use Pay4Later to offer customers credit? 262
- What is the tax position if I am working overseas but via a UK agency? 212
- Gift Aid after 5 April, before 31 Jan - Tax Credits 166
- Taxation of partners in an LLP following new rules 140
- Employment related securities question 128