Yes - they mean that the employer can't pay over the paye & ni until the account has been activated by the employer. My thought is that once you have the accounts office ref you can pay HMRC and it will land in HMRC's bank account with the correct ref ready to be allocated to the employer account once the account has been activated.
What would happen if the employer paye account was not activated (because the employer didn't receive the activation code in time) and as a result paye & ni wasn't paid over by the deadline?
Thanks Basil - this is my understanding also but there seem to be a number of accountants adamant that the first accounting period must be a minimum of 6 months.
Thanks DJKL - I now understand the significance of your reference and agree that the rental income disclosure is not needed.
In which case I have been wrongly advised by the auditors for another client who required the lessor operating lease disclosure for an investment property. I will enjoy pointing that out to them at the next audit.
Yes I am unconvinced about previous accounting disclosures (ie no disclosure in respect of the leases).
They are investment properties and included in the accounts at fair value.
I was under the impression that frs 102 requires the following disclosure by the lessor for operating leases
The future minimum lease payments under non-cancellable operating leases for each of the following periods:
not later than one year
later than one year and not later than five years
later than five years
Total contingent rents recognised as income
A general description of the lessor’s significant leasing arrangements, including, for example, information about contingent rent, renewal or purchase options and escalation clauses, and restrictions imposed by lease arrangements
so similar to the disclosure required by the lessee on the other side of the transaction.
I am beginning to wonder whether the 150 year term pushes the transaction to more of a finance lease arrangement eg the lessee has use of the asset for its economic life but I am also thinking about whether the property and land element need to be split with one element (land) as an operating lease and the property as a finance lease.
Presumably however if the organisation we are selling to is not VAT registered then it becomes potentially b2c and therefore supplied in UK and we do have to register if we pass the UK registration threshold.
It is primary purpose trading so could be performed through the current charity. I think that there will be little in the way of input tax as our costs (people's time and perhaps a little in he way of expenses) include very little vat so I suspect there is little to be gained from voluntary registration.
My answers
Yes - they mean that the employer can't pay over the paye & ni until the account has been activated by the employer. My thought is that once you have the accounts office ref you can pay HMRC and it will land in HMRC's bank account with the correct ref ready to be allocated to the employer account once the account has been activated.
What would happen if the employer paye account was not activated (because the employer didn't receive the activation code in time) and as a result paye & ni wasn't paid over by the deadline?
Thanks
Because I am (currently) not making the change - I am advising them of the change to make.
Sarahg?
Thanks Basil - this is my understanding also but there seem to be a number of accountants adamant that the first accounting period must be a minimum of 6 months.
Thanks DJKL - I now understand the significance of your reference and agree that the rental income disclosure is not needed.
In which case I have been wrongly advised by the auditors for another client who required the lessor operating lease disclosure for an investment property. I will enjoy pointing that out to them at the next audit.
Thanks all.
Thanks to both of you.
Yes I am unconvinced about previous accounting disclosures (ie no disclosure in respect of the leases).
They are investment properties and included in the accounts at fair value.
I was under the impression that frs 102 requires the following disclosure by the lessor for operating leases
The future minimum lease payments under non-cancellable operating leases for each of the following periods:
not later than one year
later than one year and not later than five years
later than five years
Total contingent rents recognised as income
A general description of the lessor’s significant leasing arrangements, including, for example, information about contingent rent, renewal or purchase options and escalation clauses, and restrictions imposed by lease arrangements
so similar to the disclosure required by the lessee on the other side of the transaction.
I am beginning to wonder whether the 150 year term pushes the transaction to more of a finance lease arrangement eg the lessee has use of the asset for its economic life but I am also thinking about whether the property and land element need to be split with one element (land) as an operating lease and the property as a finance lease.
Lots of thoughts I'm afraid but no conclusion.
Presumably however if the organisation we are selling to is not VAT registered then it becomes potentially b2c and therefore supplied in UK and we do have to register if we pass the UK registration threshold.
It is primary purpose trading so could be performed through the current charity. I think that there will be little in the way of input tax as our costs (people's time and perhaps a little in he way of expenses) include very little vat so I suspect there is little to be gained from voluntary registration.
It is primary purpose trading so can be done in the current charity.
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