Ltd Co: income t/o circa 1.5 m from small sucessful membership and events trading activities - all uk all vatable and trading circa at breakeven- ish PBT
investment income could now reach 250k from proceeds of sale of an asset and cash held inthe business now to be reinvested
The question relates to the Co vat posiiton.going forward...... does this mean that the Co will be partially exempt and have restricted vAT [ non 100% vat recovery ] or implications of this level of investment income + any other vat implications
Future possibilty of refurbhishing Co leased trading premsies - capex + opex and reviewing vat recovery on such work- or - to leave refurb to the landlord to be rentalised ?
Oh yes company accountant is more ir35 focused [ a director of the co having previously changed accountant to his+ he was in ir35 realm ] & the business is moving way beyond his sector 'knowledge' & is thus now looking to move - but would appreciate a bit of VAT specific heads up in the interim
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Partial Exemption will certainly apply. The sale of the asset may or may not be excluded from the calculation; is it an 'incidental' financial or real estate transaction?
Do your maths: you should consider whether the Standard Method is helpful, or consider a Special Method. It is an ideal time to put this in place now, to ensure good input tax recovery in the future.