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
- Depreciation 114 1
- Help needed- Unable to fill CT600 form using HMRC software- service issue 110 3
- Non-SA client with large capital gain 310 11
- Welcome to the Saturday Club 1,257 53
- Loan repayments (personal) and profits 208 6
- Window Comb Binder Cover 162 3
- client can't/won't pay 423 13
- Help - Capital Allowance 179 6
- AIA 170 4
- Splitting income from property rental or not? 250 6
- Is it possible to offset part Class 4 losses for year from one business against part profits of second business 258 9
- RTI Annual Scheme 1,183 18
- 5% penalty on late payment 263 3
- Sole trade and vehicle leasing 201 5
- Taxcalc , the hub of the problem 558 26
- HMRC SA software error? 165 2
- Plant & Machinery for commercial property 170 2
- Tax deduction for Partners for items outside of accounts 268 14
- Drive off and Wastage expenses - No supp doc 212 6
- Treatment of income for sole trader 192 2
- Form MR01 (Particulars of a charge) - does this need to be filed if you remortgage with the same lender? 787
- Copy Wanted 500
- Underpaid VAT assessment and relation to SATR 457
- Did you realise Google will not patch android exploit ... 453
- Latest phishing scam 289
- Entrepreneurs' relief 277
- Limited Company Garden Office - Minor Personal Use - BIK 272
- Corporate LLP with 30 June Year end - How to record on SA800? 251
- Supply teachers and Ltd Companies 241
- Cashback for opening business bank acct = trading income? 237