VAT Issue?

Just working on a client's accounts and have noticed that Company A which is VAT registered has been receiving a management charge from company B which isn't VAT registered - NET OF VAT.

Both companies are run by the same husband and wife and are associated.

Am i right in thinking that the charge should have been standard rated?

Comments
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VAT Charge

Oldmanwetmix |
Oldmanwetmix's picture

I thought so!

marine |

I may be wrong ...

Old Greying Accountant |
Old Greying Accountant's picture

unless they are a VAT group

mark hodges |

VAT on shared expenses

Oldmanwetmix |
Oldmanwetmix's picture

Hang on, who is paying who?

Chris Smail |
Chris Smail's picture

I read it as ...

Old Greying Accountant |
Old Greying Accountant's picture