And don't forget in the first year of VAT registration there is a 1% discount off the flat rate you apply to your turnover, until the day before your first anniversary of becoming registered for VAT. So if the flat rate is 12% of £1,200, in the first year of VAT registration it will be 11% at £132.00, populating Box 1, 3 and 5 & as 'cloudcounter' says, £1,200 income going into Box 6 of the VAT return.
HMRC said they were going to automatically apply EORI to VAT registered customers who had not yet registered and if you go to this link you can find out if they have been registered in this way.
In the search box put GB before the clients VAT registration number followed by three zeros 000, press Validation.
It will tell you if they are already set up for it. Normally it also shows the clients name and address on the right, but one of mine asked this the other day (who has not applied) and when I input their number it said they were set up, but it didn't show their company details. Which intimated to me that it was an auto set up by HMRC so I asked the client to phone and check for sure.
Hi Carl
Unfortunately, the client does not use the book keeping package, and would have no idea about posting things online, his knowledge is very limited. This is going to be a problem for customers who are not too savvy with technology.
I do understand what you are saying and that would be great. I just can't get over the point of if a human has already entered it onto a computer (albeit not in the Sage system), that I am supposed to electronically transfer it into Sage from that system and not physically type it again. Otherwise I could simply take the printed copies of the sales invoices from Excel and type them directly into Sage individually. I will have to ponder on all this, as I just can't get over that one point. Thank you for your response Duggimon
Duggimon, re-typing the figures into a spreadsheet from what I have read is what MTD is making us avoid - not re-typing anything and instead using a template or middle ware to import the information typed the first time. I actually don't think you can re-type an entry. So if the client has typed the information into Excel as an invoice in a template in there. My understanding is that I would have to extract those figures using formula (certainly after the soft landing), to bring the figures in.
Many thanks Johnt27, the person I spoke to at Sage didn't want to take me on at all, they just kept repeating that millions of companies can't be wrong doing it the way they described.
This evening I was at a CPD event with a guy talking about the Reverse Charge for VAT and I enquired with him about this, and he agreed. The soft landing period will cover you doing this. But after 12 months you will have to use a link such as a formula to populate the cells that are on the templates or middle ware sheets.
My feeling has always been that is a disallowable expense for tax purposes. I just wanted to be sure by checking it out, with the Director being named as well as the Company, in case that changed things. Thank you everyone for your help.
What has happened is that person A (The Seller) incurred legal costs when suing Person B (The Holding Company) and Person C (The Director and Guarantor).
The Holding Company (Person B), paid thousands to reimburse legal costs to Person A (The Seller), but on the County Court Order, there were 2 Defendents named (Person B the Holding Company) and Person C (the Director who was guarantor).
My question is really, can I put the whole reimbursed legal costs paid to the seller (Person A), by the Holding Company (Person B), as in my view the reason for late payment was that some sort of squabble ensued prior to the court action, and the Director (Person C) delayed matters.
The Court order states that the Defendants are to pay etc.....
I am pondering whether none, half or all of these legal costs can be claimed as an allowable expense for tax purposes within the Ltd Company (Holding Company). Or should the fees paid go against the Directors Loan Account?
My answers
And don't forget in the first year of VAT registration there is a 1% discount off the flat rate you apply to your turnover, until the day before your first anniversary of becoming registered for VAT. So if the flat rate is 12% of £1,200, in the first year of VAT registration it will be 11% at £132.00, populating Box 1, 3 and 5 & as 'cloudcounter' says, £1,200 income going into Box 6 of the VAT return.
HMRC said they were going to automatically apply EORI to VAT registered customers who had not yet registered and if you go to this link you can find out if they have been registered in this way.
https://ec.europa.eu/taxation_customs/dds2/eos/eori_validation.jsp?Lang=en
In the search box put GB before the clients VAT registration number followed by three zeros 000, press Validation.
It will tell you if they are already set up for it. Normally it also shows the clients name and address on the right, but one of mine asked this the other day (who has not applied) and when I input their number it said they were set up, but it didn't show their company details. Which intimated to me that it was an auto set up by HMRC so I asked the client to phone and check for sure.
The EORI helpline is on 0300 322 7067
Hi Carl
Unfortunately, the client does not use the book keeping package, and would have no idea about posting things online, his knowledge is very limited. This is going to be a problem for customers who are not too savvy with technology.
I get it now. Thanks so much.
I do understand what you are saying and that would be great. I just can't get over the point of if a human has already entered it onto a computer (albeit not in the Sage system), that I am supposed to electronically transfer it into Sage from that system and not physically type it again. Otherwise I could simply take the printed copies of the sales invoices from Excel and type them directly into Sage individually. I will have to ponder on all this, as I just can't get over that one point. Thank you for your response Duggimon
Duggimon, re-typing the figures into a spreadsheet from what I have read is what MTD is making us avoid - not re-typing anything and instead using a template or middle ware to import the information typed the first time. I actually don't think you can re-type an entry. So if the client has typed the information into Excel as an invoice in a template in there. My understanding is that I would have to extract those figures using formula (certainly after the soft landing), to bring the figures in.
The client only inputs the customer invoices into Excel. All the purchases, Direct debits and bank reconciliation is done in Sage.
Many thanks Johnt27, the person I spoke to at Sage didn't want to take me on at all, they just kept repeating that millions of companies can't be wrong doing it the way they described.
This evening I was at a CPD event with a guy talking about the Reverse Charge for VAT and I enquired with him about this, and he agreed. The soft landing period will cover you doing this. But after 12 months you will have to use a link such as a formula to populate the cells that are on the templates or middle ware sheets.
My feeling has always been that is a disallowable expense for tax purposes. I just wanted to be sure by checking it out, with the Director being named as well as the Company, in case that changed things. Thank you everyone for your help.
Hello
Thanks for your replies.
What has happened is that person A (The Seller) incurred legal costs when suing Person B (The Holding Company) and Person C (The Director and Guarantor).
The Holding Company (Person B), paid thousands to reimburse legal costs to Person A (The Seller), but on the County Court Order, there were 2 Defendents named (Person B the Holding Company) and Person C (the Director who was guarantor).
My question is really, can I put the whole reimbursed legal costs paid to the seller (Person A), by the Holding Company (Person B), as in my view the reason for late payment was that some sort of squabble ensued prior to the court action, and the Director (Person C) delayed matters.
The Court order states that the Defendants are to pay etc.....
I am pondering whether none, half or all of these legal costs can be claimed as an allowable expense for tax purposes within the Ltd Company (Holding Company). Or should the fees paid go against the Directors Loan Account?
Thanks in advance.