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
- Company limited by guarantee having only 1 member 34 2
- Turnover on a tax return 498 11
- Are you going to Tick and Bash on 21 May? 1,231 34
- incorrect old p60 542 15
- Company to buy shareholder land 65 4
- Deferred income - financial concern no recognised turnover CT600 172 1
- Posting Corp Tax to Sage Line 50 109 1
- Special dividends & CGT 184 1
- Director's Earnings when Drawing from Goodwill profit from Sole Trading Company sale to Ltd Company 153 1
- Networking 336 5
- VAT refund 277 2
- Bank Interest Held by Solicitor During Divorce 269 2
- US company hiring UK citizens in UK 299 4
- Corrupt excel .XLSX file 146 1
- What VAT to reclaim on van purchased on HP? 329 5
- Professional coaching claimable? 271 2
- IT Contractor 281 1
- Sage instant account codes 192 1
- Mobile phones, directors of micro-companies 289 1
- Cashflow forecasting software 330 4