VAT De mininis Rules
I have been trying to work out the de minimis rules for VAT.
I have read the HMRC notice and I think I understand what it means.
I have purchases of about £30,000 per year, but these are mostly except inputs, only about 30% have VAT charged.
I also have expenses such as utility bills, advertising, of about £15000 per year.
Therefore exempt purchases are worth £21000 per year. Input Tax at 20% would be £3500, which is about £290 per month. This is less than £625 per month. The second condition is that total exempt inputs (costs) are less than half of total costs. £21000/£45000 is about 47%.
Does this mean that I can claim input tax on all inputs of £45000/6 in my VAT return.
Secondly the 30% ratio is a rough estimate, what proof would I need to give hmrc that it is correct, and would they actually challenge it since the 47% is awfully close to half
Thanks in advance
- Double tax treaty Italy and UK 85 1
- Anyone Heard of This Outfit? 1,097 7
- Increasing the personal allowance: A top priority? 462 17
- Bereavment payment 60 1
- Can anyone advise on the best VAT Scheme to change to? 267 4
- Apologies for reposting this but first post was on Friday afternoon! 339 2
- CT600 Computations - Company Tax Return help 1,291 14
- Sage Bank Reconciliation 141 2
- Companies House incorporation service 341 12
- Factors affecting tax charge FRS 19 (marginal rate) 71 1
- P35 and Service Company questions 145 3
- VAT chargeable to conference attendees 191 6
- Is Accountancy Becoming like an Insurance Policy 197 1
- Long period of account for Corporation Tax 258 7
- Flat Rate VAT and EU sales (Non VAT) 139 3
- NIC £2000 Allowance - Care Support Worker 148 3
- VAT, vans, sole traders and business use. 1,598 12
- Share Capital 127 2
- Trading income or not? 191 1
- Charge HMRC 419 3
- Xtuple 546
- Qtac payroll for bureau 375
- Confused - Professional Association a Mutual trader, or not? 316
- Industrial & Provident Societies 313
- Why would HMRC offer to close an investigation by contract settlement 290
- CIS schemes 221
- Domain name sale and limited company 205
- Investment 185
- Director legal fees in loose connection to the company 184
- Italian friend wants to set up a UK company to reduce taxes 178