Hi Les, I thought that HMRCs view was that an item was treated as as goods if it was software bought off the shelf, but a bespoke system would be treated as a service? I agree that the answer to the OP with reference to website design is a service, but, say, in an instance where a costly piece of software is bought off the shelf, would that not be claimable? I bow to your superior knowledge on this of course, but I am sure that I had read that somewhere, would be nice to know for any future issues!
It think the various institutes will rely on accountants in practice to sort the processes and procedures out for this, expect many "invites" for working together groups over the next couple of years, we will be doing the wok!
yes you are right, I am trying not to think about that at the moment, as both are companies so it will be 2020 before this applies to them, but it is very annoying, working so well too
from my experience
they usually want to start with the oldest returns first, so may start 4 years ago. I agree with the above, they usually start by asking if there is anything that you want to disclose before they actually start looking, so best to say that there are some errors which you have found - this disclosure in itself will help to minimise penalties.
@ dealer click
will have to mention this to the client, I know they both use auto trader so may be a sensible option and at £85 per month is probably approximate to what they have to pay me for the extra reconciliation element with VT, thanks for that Glenzy
yes, we also have a supporting spreadsheet, so the qualifying and marginal vat is listed by car, and then the summary figure is used for the vat return itself. I also keep a "sales qualifying vat match" spreadsheet which lists the £ and dates for qualifying vehicles on purchase and then the same info when they are sold, works a treat on vat visits. I have come to the conclusion for very small dealer (used) that the extra expense just doesn't justify itself - the 2 garages that I work for know that they pay X extra to me per month, but is still far less than bespoke system.
I just use VT
The garage that I deal with sells about 40 per month and has a service department too. The only problem that we have is reconciling all the vehicle sales (as you know any transaction can have several elements, part exchange, finance etc), so I just sort this in excel then use that to clear down VT. it has worked ok, I am not saying a bespoke system would not do better but that would be much more expensive.
Will follow the future turnover test, Ie registration if there are reasonable grounds to believe that taxable supplies excl vat will exceed the vat registration limit in the following 30 days, you are required to notify hmrc by the end of that 30 day period and they will then register with effect from the start of that 30 day period, . So, as you say, keeping a check on the rolling turnover total. When he de registered as you say, he did not believe that his turnover would exceed the de registration limit at that time, so I cannot see any problem there,.
Point 2, will be a transfer of a going concern, and will depend on when the transfer takes place as to the treatment. If the transfer took place when the sole trade business was not liable to register because trading below the historic limit, then, you start counting up to the registration limit from the "purchase" date, TOGC does not require the previous turnover to be taken into account. If he waited however, and was not registered and trading went above the limit, you would need to register the ltd company before the transfer took place.hope that helps, not a vat specialist by the way, but hopefully any other poster will correspond with my comments.
Indeed it will be much more
Onerous, as the information included within the four returns will be transactional. This will mean those clients who keep,paper records for the year then pass to their accountants, or keep spreadsheets will no longer be able to do so. I had hoped that the system would allow a summary of information but this is not how the system is due to work. To supply transactional information clients will need some sort of cloud based software to capture this data or alternatively have their accountant doing the same. As a very small practice with virtually all my clients being at the small end, and due to start 2017/2018 it fills me with horror to be frank!
I recently became a member
johngroganjga wrote:In a Daze wrote:
I am now regulated by ICPA ...
How do they "regulate" you as a matter of interest. I understand that they no doubt provide useful support which their members appreciate, but it is news to me that they "regulate" them.
I recently became a member of ICPA and they asked for 2 references which they did follow up - and also proof of PI, I don't know if they follow up CPD, although I keep up to date with this, being a member of 2 other bodies.