Yes correct about the VAT return. We do submit one group VAT return so does it matter who claims the VAT ? The expenses aren't billed directly to Company B and are mainly food, taxi or flights.
The expenses are currently going through the balance sheet via intercompany account. So it is zero rated in Company A however posting a journal in Company B (no VAT). So doesn't show in Company's B VAT return.
If we did recharge the expenses via invoicing invoice to Company B then it would be sales in Company A and purchases in Company B so nil effect in the VAT return.
I think the way it is being posted is complicated to be honest.
If you have nothing positive to say - please refrain from responding.
I never said that I was submitting the accounts and I do not have authority to either. I was querying the called up share capital to understand if this is correct to better my understanding.
I think it is important to have communities where you can share your queries with other fellow accountants or finance professionals and see things from different perspectives. It doesn't mean that their suggestions will be followed.
Agreed - I am not too sure what to do as the filing deadline is today. I am currently the accounts assistant so can't overrule how the figure has been shown. We will be changing accountants soon but what should I do for now?
Prior year accounts had split the capital and reserves into called up share capital and profit and loss however the figures are shown correctly.
The company has received investment whereby share premium was paid.
I have asked them if the capital and reverses can be shown in one figure but they said the only option is to show the split via called up share capital & profit/loss account
The accounts haven't been submitted - maybe when they submit it will appear as one figure?
My answers
Ok thank you now I understand
Yes correct about the VAT return. We do submit one group VAT return so does it matter who claims the VAT ? The expenses aren't billed directly to Company B and are mainly food, taxi or flights.
It's because the purchase is zero rated and that if the expenses were paid from company B directly they would recognise this as zero rated.
There are in a VAT group
The expenses are currently going through the balance sheet via intercompany account. So it is zero rated in Company A however posting a journal in Company B (no VAT). So doesn't show in Company's B VAT return.
If we did recharge the expenses via invoicing invoice to Company B then it would be sales in Company A and purchases in Company B so nil effect in the VAT return.
I think the way it is being posted is complicated to be honest.
Thanks would I still need to include these recharges in box 6 of the VAT return or can I exclude this?
If you have nothing positive to say - please refrain from responding.
I never said that I was submitting the accounts and I do not have authority to either. I was querying the called up share capital to understand if this is correct to better my understanding.
I think it is important to have communities where you can share your queries with other fellow accountants or finance professionals and see things from different perspectives. It doesn't mean that their suggestions will be followed.
You are definitely overreacting!
Alright thanks for the advice!
Agreed - I am not too sure what to do as the filing deadline is today. I am currently the accounts assistant so can't overrule how the figure has been shown. We will be changing accountants soon but what should I do for now?
Prior year accounts had split the capital and reserves into called up share capital and profit and loss however the figures are shown correctly.
The company has received investment whereby share premium was paid.
I have asked them if the capital and reverses can be shown in one figure but they said the only option is to show the split via called up share capital & profit/loss account
The accounts haven't been submitted - maybe when they submit it will appear as one figure?