Definitely from HMRC.
VAT Return Direct Debit: reminder of payment collection
My submissions appear to have gone OK. I'm using Andica bridging software. When I set up the client on Andica, I confirm the tax year to download then it retrieves from HMRC any VAT returns available for submission. When submitted, the software provides a successful submission receipt and on that it indicates whether a D/D is set up.
Oddly, after my first submission, HMRC emailed me confirmation that the client's VAT return had been submitted and £x would be taken by d/d on 12/8/19. But never got this for any of the other submissions.
With the software though it has menu options to interrogate HMRC to get VAT liabilities and payments made. By doing this I was able to see that HMRC had clearly received the VAT returns.
Yesterday I received emails from HMRC confirming that d/d's would be taken for each of the clients (stated client name but not amounts or date). Presumably next week I will be able to check via the software to see payments made.
So all appears to be good.
But how should you treat the additional cleaning costs from all the crumbs?
Should you split the additional cost of hoovering up the employees and clients crumbs (allowable cost) and separately identify the hoovering of the owners crumbs (potentially not allowable cost).
Should the owner agree to only eat biscuits of a different colour to everyone else, so the hoovering split can be better analysed and controlled?
Splitting the cost of the software between the MTD clients and charging them that annually.
Very likely the van repairs invoice is made out to the contractor, not the company, so potential issue here. If the contractor invoices the company, VAT will only be recoverable if the contractor is VAT registered.
Also, the contractors are self-employed and thereby work for a number of different clients. So how can the fuel and repair costs be directly attributed to the company's liability for work done solely for them?
I would have thought the only acceptable way would be for a mileage rate to be paid by the company. It doesn't have to be limited to the HMRC 45ppm as this only applies to employees. VAT on the fuel element could then be recovered by the company.
Surely the job title is irrelevant, as HMRC effectively ignore that and look for the accounts filed to reflect the true circumstances of the actual activity.
And unless the client comes under investigation, it's only HMRC's computer which will see any job title anyway.
I've taken over clients who previously used 'franchised accountancy chains', and found that, no doubt to keep the client happy and in reality unawares, the clearly 'dodgy' expenses had been included in the P&L, but then removed in the tax calc. So all OK in the end, but it was giving the clients the false impression that the questionable items were being deducted from their tax.
I had a bonus cheque for £100 from a client, so not complaining!
Just commercial competition.
Bottom line, there's a requirement for the taxpayer to do something, if we do it for them we keep the business and earn something. Otherwise another business will do it earning their crust, and we'll starve!