Travel Agents Commission
Hopefully I've posted this in the correct place now.
I have been approached by an LLP who operate as travel consultants. The two partners were previously employed by The Original Travel Co Ltd and still operate from the same premises. The equipment still belongs to the Ltd Co and the LLP are simply allowed to use it. A 25% commission is paid to the LLP by the Ltd Co on the sales it generates which covers rent, rates, heat and light. They are also recharged for advertising, telephone and stationery expenses and this is deducted from their commission.
All monies from clients are paid direct to the Ltd Co and the commission is paid to the LLP once a month. The LLP incur a small amount of other expenditure ie postage, advertising display etc and these are the only monetary transactions going through the company as the Ltd Co pay the tour operators.
I am trying to establish whether the commission is taxable as they may well reach the threshold for VAT registration. The LLP think the commission is not taxable and that they do not need to register. One of the partners was previously in partnership with her husband selling financial services and advice where a lot of their turnover was commission. Their turnover was well over the registration threshold and they were not VAT registered and they are presuming that all commission received works the same way.
I have searched through HMRCs vat guidance and cannot find what I am looking for. Does anyone have a similar client or know whether they should be VAT registered if they reach the threshold? Any advice would be gratefully received.
- How much does the company pay 296 6
- HMRC property income enquiry 113 4
- I have done a terrible thing 327 8
- two business from one premises 70 2
- Client being taken to court and really do not know what to do 189 3
- AIA 194 16
- Company car but paying for insurance personally - reduces benefit in kind? 283 20
- partnership tax return 108 5
- Client has already received 13/14 tax refund 91 2
- How to deal with CGT relief on Directors Loan following company sale 54 2
- Anyone using BTC Accounts Production yet? 282 6
- Gov.UK - can we have HMRC.gov.uk back? 1,144 27
- Anyone else still working this week? 186 4
- s455 tax 101 3
- Van Benefit in Kind Query 67 1
- LLp Profits 83 3
- Am I getting Soft?? 541 12
- SELLING A PROPERTY at LOSS/PROFIT - CAP GAINS ALLOWANCE 199 3
- Invest in ''buy to let'' property 1,489 44
- Taxation of the sale Record rights 98 1
- Accounting referance change & deficient accounts. 490
- corporate hierarchy 463
- Advice - 313
- Anyone had HMRC refusing to act on EPS database glitch? 259
- WWOOFers 250
- Art Gallery - Splitting a property between business and personal use 230
- The booking.com con 222
- Tax liabilities in USA for warehoused products 211
- Cocaine anyone? 199
- UK State pension paid in NZ 169