Anonymous
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Query

Can I?

My client is a sole trader. They bought something and they want to know if they can claim the tax back against VAT and also if the company can claim the PAYE against their dividends. And also is it a loan? Please tell me all this.

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By mrme89
13th Oct 2017 13:20

Nice one, Tim.

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By Tornado
13th Oct 2017 13:35

I would just tell your client that the answer is 42 and then present your bill.

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By Dib
to Tornado
13th Oct 2017 13:44

I thought it was £8,000ish?

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By Ruddles
13th Oct 2017 13:48

Yes to all

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to Ruddles
13th Oct 2017 13:58

Well not the PAYE and dividends, are you stupid or something? That is only valid if you book the PAYE to the DL account at the same time as backdating the dividend minute to a quarter past 4 on the previous evening.

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By Ruddles
to ireallyshouldknowthisbut
13th Oct 2017 14:34

My bad. But matter it doesn't really because a coronation tax deducts you can make for dividends at 38.1% and if the DLA is overdrawn you can claim a refund of taxes from HM Reverend and Customers.

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By Kevkava
13th Oct 2017 13:53

I've noticed that some regular contributors aren't really offering the help they could but instead just indulging in low sarcasm.

So to properly answer your questions:

Yes
Yes
No

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13th Oct 2017 13:57

Yes

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By mabzden
13th Oct 2017 14:27

Err... is there any reason why you chose to post this anonymously??

Yours,

DeepThroat'sEvenMoreSecretiveFriend

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13th Oct 2017 14:44

That Friday feeling.

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13th Oct 2017 21:26

Can I say yes AND no?

Or maybe I should select Maybe/Undecided/WGAF/POUC

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14th Oct 2017 00:25

Dear Anonymous

Thank you for such a clear, well thought out and unambiguous question. It is such refreshing to see them these days.

Please congratulate your Client on their choice of representation.

Notwithstanding that your Client may not be VAT registered and the something they bought might not be wholly and exclusively for the purpose of their trade then, ordinarily, if you can identify the tax involved, as being value added tax and have necessary documentary evidence such as, but not limited to, an invoice, then you enter this in the appropriate box on the VAT Return affording you the correct reclaimation of taxes due.

Notwithstanding that your Client as a sole trader, rather than a sole director / shareholder of a limited company, does not have dividends; offsetting PAYE taxes and National Insurances against your dividend income to reduce your personal income tax, is not allowed and remains one of those unjust taxes of present day.

Notwithstanding that a sole trader loan to themselves is possibly them funding their own losses or simply boosting their cash balances; there is the conundrum "is it a loan? " Notwithstanding what "it" might actually be; clearly it is a loan. Again, notwithstanding the facts, your Client, notwithstanding any ability to distinguish their legal status, is clearly drawing funds from the business in a manner, notwithstanding the truth, is subject to, possibly disputed, interpretation, or possibly misunderstanding.

Notwithstanding any errors or ommissions I have "told you all this."
E&OE

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