CT liabilityThanks again for your response.
Yes there is a risk of a ct liability indeed. That's is one of the reasons why it shall be changed.
The trustees are already in so I think there is no possibility to change here ;).
Mean of split it upOk the splitting shall be the restricted part to remain in the charity while the unrestricted part shall be moved to the ltd which and to do it is anticipated at the moment. In terms of VAT the fully rated part would be shifted to the sub and the exempt part would remain in the charity. All the assets will remain also in the parent and all services shall be charged reasonably. Just the non-charitable biz shall be shifted.
No it is not insolvent. We cleared this up with an accountant already and it is still fine. I am dealing just with getting all the open questions together to ask the auditor for a written statement to make sure everything is fine. It was just I wanted to try to make things what is possible and give only the rest of the questions to the auditor. It is not insolvent but also not that wealthy, if you know what I mean.
Anyway thanks a lot for your answer/s.
Thanks I think that's it pretty much what I needed to know. You know I am there as a volunteer to support them for free as it has a couple of financial problems. So I thought to give it a try first here, but yes if it will be big enough I think professional advice will be the best to go for as I am more for taxation.
Do you know also anything about my 2nd question? Can the deficit if any at the time of splitting be transferred to the sub?
thanks for your response with the links.
Yes I know that the charity's accounts must be run under SORP but for me was the question if the limited must do the same as in my view it is a group company but also as a limited to run its accounts under UK GAAP or IFRS. If that both would be the case then I think it would necessary to make a transition to SORP.
I read myself through a couple of books of SayerVincent but these are open points to get to know for me and I couldn't get that figured out the books there.
Sorry I think I didn't make this clear.
sorry for the delayPatrick,
So I think I got it now. Under the UK VAT act you deduct the VAT invoiced in March, received in April, in March.
Under the German tax act I agree with your colleaque/s. The right of VAT deduction arises when the VAT becomes chargeable and you have the invoice. If the time the service was rendered for the purpose of the company and you receive the invoice falls apart then you have the right to deduct the incoming VAT when both prerequisites are fulfilled. This would mean for Germany you could deduct it in April first. You could find this under sec 192 paragraph 2 sentence 4 of the German VAT guidelines resp. Sec. 15 para. 1 of the German VAT act.
For the other countries I would assume it is the same but am not sure. I tried to figure that out on the different pages of the France and Spain but couldn't find anything yet.
sorry for the delayhi,with sipgate uk you can call in for 3p/min. Check out these page
You can get local numbers on there as well as 0845 or so numbers to dial out. I use it for a while and getting a good service usually.
voipwhich numbers you want to call in there? 0845?
VAT Reclaim DatesHi Patrick,
I am not really sure which VAT dates you mean in the EU. You mean for vat reclaims on services? Usually a VAT reclaim shall be handed in within 6 month of the end of the calender year so 30 June. That should be the same for all of the countries you asked for as it is a EU rule.
Here you could check for Germany:http://www.bzst.de/003_menue_links/006_ust-verguetung/061_ausl_untern/index.htmlbut only in German.
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