Flat Rate Scheme - Hotel Costs

Will hotel costs or similar count towards the relevant goods value ?

Didn't find your answer?

HMRC guidance is not entirely explicit at this point regarding relevant goods and i am interested in opinions regarding travel costs, specifically accomodation as to whether this will count towards relevant goods ? My initial thoughts are no, so i would be grateful for any opinions around this.

Replies (6)

Please login or register to join the discussion.

avatar
By ste99
31st Mar 2017 10:47

No - services.

Thanks (0)
Replying to ste99:
avatar
By Dafydd Hopcyns
31st Mar 2017 11:11

How about telephone costs? This could be classed as a service. However, electricity and gas are specifically accepted as relevant goods in HMRC's list.

Thanks (0)
Replying to Dafydd Hopcyns:
Stepurhan
By stepurhan
31st Mar 2017 11:16

Dafydd Hopcyns wrote:
This could be classed as a service. However, electricity and gas are specifically accepted as relevant goods in HMRC's list.

So HMRC don't even know what a good is. Heaven help us.
Thanks (0)
Replying to stepurhan:
avatar
By spidersong
31st Mar 2017 14:14

To be fair to them, in this case (and maybe this case only), they do know what the legislation says though.

Sch 4, Para 3 of the VAT Act says "The supply of any form of power, heat, refrigeration or ventilation is a supply of goods."

That however is the only mention of what may be thought of as 'intangible goods' that I recall in the legislation. And telephone calls and hotels are neither; power, heat, refrigeration, nor ventilation (unless they charge specifically for opening the windows for you!).

Thanks (0)
Stepurhan
By stepurhan
31st Mar 2017 11:12

In what way would this be a good? Do you get to keep the room afterwards?

I know that the excepted goods rules are complicated, but why are so many people struggling with the basic business definition of goods?

Thanks (1)
By Robert Lovell
31st Mar 2017 17:43

Good article from Rebecca Cave on some recent FRS guidance from HMRC:

https://www.accountingweb.co.uk/tax/business-tax/vat-flat-rate-scheme-le...

Thanks (1)