Hi, I'm a bookkeeper and have a client who has recently become vat registered on the flat rate scheme. She has several holiday cottages and insures each booking with an insurance company who pay out a percentage amount to her if a booking has to be cancelled and payment refunded to the guest. From reading around I don't think this insurance money should be included when calculating the Box 1 and Box 6 figures as it's not a supply of any kind but it is income so I'm not certain. Can anyone clarify for me please ? I realise that the flat rate for hospitality is currently 0% but it won't be forever and it's still relevent for Box 6 potentially anyway.
31st Aug 2021
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