Member Since: 30th Mar 2010
20th Mar 2020
To be honest, anything Coronavirus related, I'm doing for free.
It feels like the right thing to do.
8th Jan 2014
Why do manners need an audit trail?
"We also need to have a clear audit trail with 'thanks'"
This did make me giggle (in a nice way) but I don't think thanks, gratitude and manners need an audit trail. These things are surely to be encouraged without the need for public recognition or "payback"
4th Sep 2013
Extended Hours by pre-arrangment
I offer extended hours, into the evening or weekend, by prior appointment. I tend to work late anyway, so if a client skypes me "after hours", if I'm working, I will generally respond. But if I'm not working, and it's "out of hours", then I will pick it up the following day. Generally clients are reasonable, and don't take advantage - perhaps I have been lucky, though, as all our clients are lovely and I'd chat with them any time. (Possibly, they have better things to be doing, though, than chatting to their accountant). I am as flexible as I can be, and hope that the clients are likewise as it's a (hopefully) equal relationship.
18th Dec 2012
Oh dear, he can't have taken the advice fully onboard or misunderstood it though, because the FRS doesn't allow him to just treat the "profit margin" as the VATable sale.
I'd do what BKD suggested, and start by establishing when he exceed the FRS threshold, as from that point onwards, he shouldn't have been in the scheme anyway.
HMRC also have the discretion to agree a retrospective leaving date from the scheme.
(I can see what you mean - that if he had been on the standard scheme, with a high proportion of VAT registered temps/contractors, and few other overheads etc... he would have effectively been paying over the net VAT over on his profit margin...
Out of interest, what business sector/percentage was he actually using for his FRS?)
17th Nov 2012
Just do it...
Just correct it on the next VAT return.
One of my clients did something similar (they actually used the correct percentage for a couple of quarters and but had what looked like a typo in one quarter), so the VAT return that contained the correction had a very strange percentage for VAT. (Nothing terrible happened, though)
1st Nov 2012
We also do both. We do have two websites because one started off as a blog on a free platform but now has it's own domain name.
Having two different fee strategies was quickly abandoned (pretty much instantly), because it seemed rather unfair that the "online" client got cheaper fees than someone up the road using desktop software. (It also seemed ludicrious to say "if you go online and do everything by email/post/phone/whatever, it will be cheaper than if you just drop your stuff round with a backup file). Also, our fees are probably at the lower end of the spectrum as it is, whether online or not.
Our clients (who are a lovely mix) use a variety of software both online and desktop (plus the odd shoebox/carrier bag or spreadsheet) and not all our geographically distant clients are using online software.
Neither have we pushed any of our clients onto online software. Apart from the fact that personally, I'm rubbish at sales, if the software - whether it be online or desktop - is any good, it will speak for itself.
At the start, I did the SEO myself and managed to get to the first page in google for quite a few accountant-type search terms, but in recent years, that has slipped (as has the google rankings). We are still gently growing, though.
26th Sep 2012
No you aren't missing anything...
the software interface may be looks about ten years old, but it does the job brilliantly, including CIS and P11Ds.
It's well worth the money, as plenty of other threads on here can attest to.
13th Jul 2012
Cerfiticate of Fiscal Residence
It sounds like you need to write to HMRC to request a "Certificate of Fiscal Residence" which can then be sent on to the client's customer.
(When I last did it, it was very straightforward - I wrote to the office that dealt with the company's corporation tax. It took about 10 days to arrive.)
You might need to do this on an annual basis.
3rd Jul 2012
Zero rated car
If it is an eligible, zero-rated car, it can be sold outside the VAT margin scheme.
See VAT Notice 701/59 para 4.2 (and VAT Notice 718/1 para 10.8) for further details.
In general, you don't add delivery charges to the cost of the car for the VAT margin scheme:
1st Jul 2012
Bolt ons for Sage
Unfortunately, Sage won't handle the VAT Margin Scheme natively. However BBSOL do a bolt on for Sage that will enable you to handle both the VAT margin scheme and things like the stock book and the part-exchanges. (But probably only worth it, if the client is using it, too - and possibly if you are doing the bookkeeping onsite)
Anyway, following your example the accounting entries would be:
(Purchase & sale of car 1 only included for completeness)
Purchase of car 1:
Dr purchases £2000
Cr supplier (PL) £2000
Sale of car 1:
Cr Sales £2833.33
Cr VAT (on margin of £1000) £166.67
Dr purchases (part ex of car 2) £600
Dr customer a/c in SL or cash/bank (net amount payable by customer) £2400
Sale of car 2:
Cr Sales £933.33
Cr VAT (on margin of £400) £66.67
Dr purchases (part ex of car 3) £500
Dr customer a/c in SL or cash/bank (net payable by customer) £500
You will have to enter the part-ex as a credit note (assuming you don't have a Sage bolt-on)
(In practice, if you are doing the bookkeeping retrospectively, offsite, I would set up a spreadsheet for the sales, which also tracks the cars and calculates the VAT margin on each sale automatically and then import it all into Sage in one go)
See this thread, too: https://www.accountingweb.co.uk/anyanswers/second-hand-car-dealer/492056
If you are hoping that the client will use Sage for their actual invoices (to give to their customer), you are going to have to get them to raise an invoice and a credit note:
Car 1 sale:
sales £3,000 (zero VAT amount*)
credit £600 (zero VAT amount*)
and then you will have to journal the marginal VAT of £166.67 (Dr sales / Cr VAT)
Car 2 sale:
sales £1,000 (zero VAT amount*)
credit £500 (zero VAT amount*)
and then journal the marginal VAT of £66.67 (Dr sales / Cr VAT)
(Personally, I would set up a separate VAT code for marginal VAT with a zero rate, rather than use T0, and you can't use T1, as Sage's invoicing module would automatically calculate VAT)
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