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
- Tax treatment on the sale of a business 163 5
- No Tax Returns submitted for last 16 years 874 19
- Companies house dissolved my company. What do I do now? 449 9
- Can I become a self employed bookkeeper?? 132 1
- VAT on converted property having opted to tax 167 7
- tagging in Iris accounts production for non standard item 102 1
- Place of Supply or these two contracts walk into a German Bar 85 1
- Auto-Enrolment 2,846 155
- How to account for VAT on a newbuild that has been let 99 1
- 'Find an accountant' 190 2
- PI insurance for Auto Enrolment 96 1
- Withholding Tax - Invoicing Ecuador 79 1
- Depreciation on property improvements 104 1
- Construction Industry Funding 108 5
- CGT advice on amicable divorce settlement 95 1
- How important are Journals? 327 9
- QuickBooks, Xero, FreeAgent and ClearBooks 720 15
- Company trading loss relief 271 4
- National Insurance 602 1
- Social Worker limited Co 128 1
- Best way to take money from a business if you have unlimited EIS allowances? 490
- Skandia using wrong address 433
- Accountants who provide tech/IT advice 378
- Does anyone use PS Financials accounting software out there? 265
- FHL, period of grace and Entrepreneur's relief 236
- Employee rewards 227
- Legislation access for part-time sole practitioner? 206
- EPS Analysis - Change to EURO 203
- Rental Property W&T And Equipment 180
- Gift of reversion and lease into trust by two different people - later PPR 179