I agree with that, you don't want to get caught inadvertently driving without insurance which is a serious offence, and with ANPR cameras the police can pinpoint likely offenders quite easily.
Are you saying the pool car would only be used on trade plates. I suggest double checking the DVLA status of the pool car, is it taxed for road use or "SORN"ed.
Secondly don't fall foul of the DVLA trade plate rules. There are restrictions on what they can be used for, usually only demo, road testing, or driving to another repairer.
Thirdly, check the insurance policy requirements for the Motor Insurers Database (MID). You should probably be adding the reg to that within 14 days of purchase.
You may know all the above already but you don't want to end up with a driver at the roadside with the car confiscated by police.
Hello Paul, thank you for your reply, in light of what you have said, perhaps I should add a further point as all I am trying to ascertain is if I ask to see the insurance policy from the client, will it show a 'car reg' and 'pool car' for 'business use only', and will it be a separate policy to the one used for the trade plates, or will it be included within it.
I am just trying to be sure footed when speaking to the client, of what I would expect to see as I am dubious about claiming any VAT if it fails the test. Hoping someone who is used to seeing insurance for pool cars, can help.
Decline
Be very strict on extras and excess time spent
Charge a little extra to help claw back the lost time over a number of years
This is good advice. I have a time sheet on my desk that I complete, every time I do one of those additional little ad-hoc jobs, or investigative work that the client needs information on. Otherwise you ending working a quarter of your day for free!
I wonder if they are getting confused when not vat registered, with the fact that the full gross amount can be claimed as an expense or the full gross amount can be capitalised and capital allowances claimed on this full amount? Meaning, are they thinking you will only put the net amount through as the amount paid for the tools?
I actually believe all you need to know is in the link about who is providing the work, how it is being billed etc.
- He is being billed £30 for each test from the garage as a rent
- and then charging £54.85 per MOT.
-Does the bill from the garage at £30 per MOT 'lane rental' include VAT or is is shown as outside the scope?
That would be my first line of thought on the matter, but I would still check with HMRC if in doubt.
At risk of stating the obvious, the procedures you mention confirm the client's ID and presumably you have some means of satisfying yourself that the client is not a PEP or subject to sanctions. Then you need to do the client risk assessment (and record that). #justsaying
David
Of course David, I was in essence, basing just an element of my onboarding process to show the OP that doing a 'remote zoom' onboard is very risky indeed!
Could someone help me in uderstanding what the rules are on depreciating additions to existing fixed assets.
For example: An existing tractor purchased 2 years ago at £80K is being depreciated at 20%. Additions worth £2000 is made to the tractor, for example replacement tyres.
How should the depreciation of the addition be treated on either a straight line basis or residual basis?
Any assistance would be much appreciated.
Replacement tyres would be Repair & Renewals on the P & L surely?
In this instance of a zoom call, and not really being able to verify anything having not met face to face at the home address, I'd say an electronic check was essential.
My view is, I don't want to pay out any expenses that I don't have to and therefore don't use electronic checks. By choosing not to do electronic checks, I NEVER take on remote clients, (all clients are local to my office), I ALWAYS see them face to face at their business premises or their home address. Obtain copies of Passport (photographic), Driving license (Photographic and shows address) and a recent utility bill (showing address).
If they lie to me or have moved, as far as I am concerned, I have met the requirements of due diligence. It is not for me to decide if the documents are fake or they are lying, I have met the requirements that have been foisted on me.
My answers
Hello Paul, thank you for your reply, in light of what you have said, perhaps I should add a further point as all I am trying to ascertain is if I ask to see the insurance policy from the client, will it show a 'car reg' and 'pool car' for 'business use only', and will it be a separate policy to the one used for the trade plates, or will it be included within it.
I am just trying to be sure footed when speaking to the client, of what I would expect to see as I am dubious about claiming any VAT if it fails the test. Hoping someone who is used to seeing insurance for pool cars, can help.
This is good advice. I have a time sheet on my desk that I complete, every time I do one of those additional little ad-hoc jobs, or investigative work that the client needs information on. Otherwise you ending working a quarter of your day for free!
The title for this link says:
'Claim back VAT if you're exempt from it as a local authority, academy, public body or eligible charity'
They are none of the above, regarding the 'Companies MD getting stressed', I'd get him to sit down and have a nice cup of tea and accept he is wrong.
I wonder if they are getting confused when not vat registered, with the fact that the full gross amount can be claimed as an expense or the full gross amount can be capitalised and capital allowances claimed on this full amount? Meaning, are they thinking you will only put the net amount through as the amount paid for the tools?
I actually believe all you need to know is in the link about who is providing the work, how it is being billed etc.
- He is being billed £30 for each test from the garage as a rent
- and then charging £54.85 per MOT.
-Does the bill from the garage at £30 per MOT 'lane rental' include VAT or is is shown as outside the scope?
That would be my first line of thought on the matter, but I would still check with HMRC if in doubt.
Read here:
https://www.gov.uk/hmrc-internal-manuals/vat-taxable-person/vtaxper48000
Of course David, I was in essence, basing just an element of my onboarding process to show the OP that doing a 'remote zoom' onboard is very risky indeed!
Replacement tyres would be Repair & Renewals on the P & L surely?
In this instance of a zoom call, and not really being able to verify anything having not met face to face at the home address, I'd say an electronic check was essential.
My view is, I don't want to pay out any expenses that I don't have to and therefore don't use electronic checks. By choosing not to do electronic checks, I NEVER take on remote clients, (all clients are local to my office), I ALWAYS see them face to face at their business premises or their home address. Obtain copies of Passport (photographic), Driving license (Photographic and shows address) and a recent utility bill (showing address).
If they lie to me or have moved, as far as I am concerned, I have met the requirements of due diligence. It is not for me to decide if the documents are fake or they are lying, I have met the requirements that have been foisted on me.