VAT query

VAT query

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he has added an extra string to his bow by renting out a cottage as holiday lets in his own name.

This letting will not be VAT registered but he wants to organise local hunting and treking expeditions in the locality - May be 3/4 per year, the trekkers will stay at the holiday let. The company organises treking expeditions abroad and is registered under the TOMS scheme. Previously the UK expeditions were in the company but now he wants to do it out if the company.

Can he do this. I am aware of income tax and nic position but what is VAT position.

Any help greatfully appreciated.

ANDREW

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By John Savage
13th Jun 2005 08:29

Don't see why not
If he owns, as I assume, the property in his own name, I cannot see any reason why he cannot run this business in his own name. Of course, he should keep clear and separate records, separate bank accounts, financial accounts, costs of the business and so forth, to ensure that there is 'clear blue water' between his own activities and the company's.

As in every case like this, it is always adviseable to enter into a written agreement bewteeen himself and the company clearly spelling out the operating parameters between the two businesses. Any shared costs (which should be as few as possible), such as telephones, vehicles, use of assets etc should be charged out by the company to himself, charging VAT on any rental/use. Of course no-one can guarantee that Customs won't challenge it, but a written agreement, and separate records etc can head off any challenge.

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