"Secondly, the £2k threshold for claiming input tax on capital expenditure under the FRS only relates to single items, so make sure the £2,500 didn't include other things too, like warranties, printers or ink cartridges. If it did, the asset concerned may be below the £2k threshold."
It doesn't only relate to single items.
In fact Notice 733 uses the same example as you did as an example of what qualifies. "a computer package (computer, printer, camera, scanner, speakers, and so on) bought as 1 package is 1 purchase of capital expenditure goods – if the package costs £2,000 or more (including VAT) then input tax can be claimed"
"Expenses will probably be shown inclusive of VAT as it is irrecoverable (similar to a business not registered for VAT), and it is likely that turnover will be shown net of the flat rate VAT payment. You may however find that the flat rate VAT payment is shown as a profit and loss expense rather than deducted from total turnover."
An old thread I know but two years later the (apparently) incorrect BIM75005 is still silent on the subject of interest and "any expenditure incurred in respect of the acquisition, ownership, hire, leasing or use of the vehicle" seems (to me) to cover interest on a loan used to purchase the vehicle or the finance element of a hire purchase or finance lease.
I can see that interest on a business loan used towards the purchase of a vehicle would be allowable (it's just a loan of some cash after all) but interest on a finance lease surely must fall into "expenditure incurred in respect of the leasing of the vehicle" mustn't it?
Is the general opinion still that this interest is an allowable expense even if mileage allowance is claimed?
It sounds similar to a Santander 123 account - the payments are treated as 'discounts' based on the amount of payments made and AIUI aren't subject to tax. They're analogous to credit card 'rewards' or points.
If the reward was a fixed fee payable just for operating the account then it would be subject to tax but not treated as interest.
If you were to engage an accountant I'd expect you'd find that your 'lump sum' was really a loan from the company which you're going to pay back from either salary or dividends some time on or before April 5th next year.
My answers
"Secondly, the £2k threshold for claiming input tax on capital expenditure under the FRS only relates to single items, so make sure the £2,500 didn't include other things too, like warranties, printers or ink cartridges. If it did, the asset concerned may be below the £2k threshold."
It doesn't only relate to single items.
In fact Notice 733 uses the same example as you did as an example of what qualifies. "a computer package (computer, printer, camera, scanner, speakers, and so on) bought as 1 package is 1 purchase of capital expenditure goods – if the package costs £2,000 or more (including VAT) then input tax can be claimed"
Surely in QB you just record the un-invoiced payment as a 'Sales Receipt' rather than as a received payment and corresponding invoice?
I'll answer my own question I think - it probably doesn't mean that at all!
I think "...e-file VAT in the usual way ahead of May 2019" actually means ""...e-file VAT in the usual way UP TO May 2019".
There's a particularly annoying ambiguity in the way that sentence has been phrased.
Or indeed, assuming that if he had an accountant he'd have asked him, he could just google 'place of supply of services', which would no doubt lead him to https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a
"Expenses will probably be shown inclusive of VAT as it is irrecoverable (similar to a business not registered for VAT), and it is likely that turnover will be shown net of the flat rate VAT payment. You may however find that the flat rate VAT payment is shown as a profit and loss expense rather than deducted from total turnover."
https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim31585
An old thread I know but two years later the (apparently) incorrect BIM75005 is still silent on the subject of interest and "any expenditure incurred in respect of the acquisition, ownership, hire, leasing or use of the vehicle" seems (to me) to cover interest on a loan used to purchase the vehicle or the finance element of a hire purchase or finance lease.
I can see that interest on a business loan used towards the purchase of a vehicle would be allowable (it's just a loan of some cash after all) but interest on a finance lease surely must fall into "expenditure incurred in respect of the leasing of the vehicle" mustn't it?
Is the general opinion still that this interest is an allowable expense even if mileage allowance is claimed?
It sounds similar to a Santander 123 account - the payments are treated as 'discounts' based on the amount of payments made and AIUI aren't subject to tax. They're analogous to credit card 'rewards' or points.
If the reward was a fixed fee payable just for operating the account then it would be subject to tax but not treated as interest.
If you were to engage an accountant I'd expect you'd find that your 'lump sum' was really a loan from the company which you're going to pay back from either salary or dividends some time on or before April 5th next year.
I wonder what the situation would be if one of the bikes was stolen under circumstances where it wasn't insured?
Surely that would crystallise the issue.
"If you request one, they must issue one."
...unless you happen to be on a consumer tariff which specifically isn't available to businesses.
There's no requirement to issue a VAT invoice to an entity which isn't VAT registered.