Agreed. Whole purpose of this is to help each other out and sometimes it almost becomes a platform to showcase knowledge!
In response to the question, personally, I would put it through. As long as its a legit claim (director will validate this and you will comply as I assume its unaudited company so not your responsibility to make sure the actual mileage was done!) then I would happily show it in current year and be comfortable defending it if required later on. As you say, its not a massive cost in any case and in the grand scheme of things, I think HMRC have got bigger and other priorities!
well this is it - i dont know the answer. My post is to try and establish if others are using AI and in which capacity.
I would think it could certainly be used to better manage a diary and tasks etc. Potentially check rules. Does it give people a competitive advantage and allow more efficiency?
It seems to be getting used more and more in all areas and its usage will only increase....
Damn... the lovely thing about this forum is you're quickly reminded why you dont take on certain clients!!
Luckily for me, its not one of mine. I stay away from anything property related due to the complexities and rightly said, the value is so high and the impact is massive.
Its a friend who is going through this and was going to have a convo with his accountant (yes i refused the job!) but he run it by me to gather my thoughts.
Yes was used as trade premises only. Was purchased 8 years ago
All fixtures and fittings will be disposed off and building given as a shell.
Sorry I meant Tax loss, not P/L Reserve. All tax losses are relating to trade.
Looks like capital allowances wasnt claimed in the first place
Some fixtures were actually treated as stock so they will just be a straight W/O.
Maintenance work was always expensed.
Didnt think about VAT - Business is VAT registered though. I thought it was to be excluded for VAT purpose but no doubt you are going to tell me otherwise..
Thanks Ruddles for your guidance so far. And apologies for the constant silly questions!
My final query is that if the only other income is PAYE for which the tax is deducted at source anyway. Then there is nothing else to consider in this case and the full tax paid via the CT61 process will get rebated?
So if I apply some simple numbers - personal property was fully paid off prior so all mortgage relates to loan given to the limited company.
Director pays £500 per month on an interest only mortgage. Limited company pays exactly the same back to the Director. So no profit made on the loan interest.
£6k per year P/L expense to limited company (saves the limited company 19% in CT so £1,140 saved here). CT61 process pays £1,200 in tax to HMRC and £4,800 to Director.
When Director does self assessment, this is declared with the payment already made to HMRC so any adjustments are made here. In this case, interest income nets off with interest paid so there’s no actual profit. So the £1,200 already paid gets rebated at this stage, or goes against other overall tax liability calculated at this stage.
If it was me, I would claim back the VAT on anything purchased as per normal. Then I would charge the P/L with the cost as we don't hold it as stock. There is no sales invoice involved. If I really wanted to be better, I maybe would show it under the charities line in the P/L rather than the COG line.
Main thing would be is the VAT gets claimed back, the full cost hits the P/L so reduces profit accordingly..... isnt it that simple?
My answers
Agreed. Whole purpose of this is to help each other out and sometimes it almost becomes a platform to showcase knowledge!
In response to the question, personally, I would put it through. As long as its a legit claim (director will validate this and you will comply as I assume its unaudited company so not your responsibility to make sure the actual mileage was done!) then I would happily show it in current year and be comfortable defending it if required later on. As you say, its not a massive cost in any case and in the grand scheme of things, I think HMRC have got bigger and other priorities!
well this is it - i dont know the answer. My post is to try and establish if others are using AI and in which capacity.
I would think it could certainly be used to better manage a diary and tasks etc. Potentially check rules. Does it give people a competitive advantage and allow more efficiency?
It seems to be getting used more and more in all areas and its usage will only increase....
Damn... the lovely thing about this forum is you're quickly reminded why you dont take on certain clients!!
Luckily for me, its not one of mine. I stay away from anything property related due to the complexities and rightly said, the value is so high and the impact is massive.
Its a friend who is going through this and was going to have a convo with his accountant (yes i refused the job!) but he run it by me to gather my thoughts.
Ill leave to them.... :)
Thanks all....
Sorry my bad - should have given more detail:
Yes was used as trade premises only. Was purchased 8 years ago
All fixtures and fittings will be disposed off and building given as a shell.
Sorry I meant Tax loss, not P/L Reserve. All tax losses are relating to trade.
Looks like capital allowances wasnt claimed in the first place
Some fixtures were actually treated as stock so they will just be a straight W/O.
Maintenance work was always expensed.
Didnt think about VAT - Business is VAT registered though. I thought it was to be excluded for VAT purpose but no doubt you are going to tell me otherwise..
Thanks.
Thanks Ruddles for your guidance so far. And apologies for the constant silly questions!
My final query is that if the only other income is PAYE for which the tax is deducted at source anyway. Then there is nothing else to consider in this case and the full tax paid via the CT61 process will get rebated?
Thanks again.
Thanks for responses so far guys….
So if I apply some simple numbers - personal property was fully paid off prior so all mortgage relates to loan given to the limited company.
Director pays £500 per month on an interest only mortgage. Limited company pays exactly the same back to the Director. So no profit made on the loan interest.
£6k per year P/L expense to limited company (saves the limited company 19% in CT so £1,140 saved here). CT61 process pays £1,200 in tax to HMRC and £4,800 to Director.
When Director does self assessment, this is declared with the payment already made to HMRC so any adjustments are made here. In this case, interest income nets off with interest paid so there’s no actual profit. So the £1,200 already paid gets rebated at this stage, or goes against other overall tax liability calculated at this stage.
Correct?
All sounds awfully complicated to me..
If it was me, I would claim back the VAT on anything purchased as per normal. Then I would charge the P/L with the cost as we don't hold it as stock. There is no sales invoice involved. If I really wanted to be better, I maybe would show it under the charities line in the P/L rather than the COG line.
Main thing would be is the VAT gets claimed back, the full cost hits the P/L so reduces profit accordingly..... isnt it that simple?
legend! thanks - they were all sitting there.....
agree and the pricing module seems amazing and the solution to my problem.
but thats not a software that can just be purchased for pricing only - and its quite pricy.
something you are willing to share? as in what your fixed pricing rates are and what are your variables?