Thanks for your replies.
Let me clear the situation again.
Sole Trader is NOT vat registered.
Sole Trader has eligible business activity and not required to register for VAT
The Landlord/Seller was VAT registered, the property was opted to Tax and always charged VAT on rent the paid.
The Sole Trader did not want to register for VAT himself just because of the property so he formed a separate company. The company opted to tax the property and no vat was charged by the seller to the company on TOGS basis i.e buying part of his rental business. seller also has other commercial properties.
Sole Trader is now the Tenant of the company paying £15k rent per annum as per lease agreement.
firstly whether this transaction can be treated as a TOGC?
When landlords sells the building with a tenant in place, this could qualify as the sale of a property business and not just the sale of a property, the sale could be treated as a TOGC without VAT being charged.
5.—(1) Subject to paragraph (2) below, there shall be treated as neither a supply of goods nor a supply of services the following supplies by a person of assets of his business—
(b)their supply to a person to whom he transfers part of his business as a going concern where—
(i)that part is capable of separate operation,
(ii)the assets are to be used by the transferee in carrying on the same kind of business, whether or not as part of any existing business, as that carried on by the transferor in relation to that part, and
(iii)in a case where the transferor is a taxable person, the transferee is already, or immediately becomes as a result of the transfer, a taxable person or a person defined as such in section 2(2) of the Manx Act.
A proper lease agreement is in place to pay the £15k rent per annum as it was a requirement by the lender bank.
If anyone still believe this arrangement is caught by the anti avoidance please elaborate. It has been nearly 6 months now so I am sure can warn the client so he can talk to the solicitors who advised him.
Whats the logic here?
Save your neck anything you submit to hmrc must be approved by clients. IRmark means they have the same copy you have submitted.
thanks guys for suggestion.
I have decided to go with moneysoft as I manage AE with Smart pension myself so no a biggy dealing with AE. I am only moving from BPT as I am trying to reduce my work load a bit by running a separate app for generating payslips and being onemandband..
Moneysof support replied
We do not know that as it is not our software - you will have to ask the HMRC.
:) not a very helpful reply..
Anyways I was in a mood so I did some research and success..
I have successfully transferred all the employers/employees from BPT to moneysoft by extracting data from BPT backup file using DB Browser for SQLite.
anyone interested I will post it as a tutorial on how extract data from BPT and save it CSV file.
If you opt to tax the commercial property to claim the VAT on purchase then you may have to account for output tax on deregistration.
do you still use moneysoft?
When you say "none of the employees opted to pay any pension contributions", I hope you mean "all of the employees opted out and I have records of me enrolling them and them opting out". If not, you're in big trouble.
yes I meant "all of the employees opted out and I have records of me enrolling them and them opting out"
Looks like I may have to type in own csv files for employer and 35 for employees using moneysoft!!.
Technically Yes, say from 23 May!!
Imported foodstuffs will only attract VAT if the C79 shows it.
Do you mean Acquisition Tax on intra-EU supplies? If so, then you calculate Acquisition VAT at the rate applicable for those goods in the UK.
Good morning. @Les it is EU Acquisitions from Romania.
I have received the the previous VAT returns and it looks like the previous accountant have used 1% notional rate instead of 20%.
Am I missing something. All the manual I have seen sofar are saying 20% notional VAT to be added in
Box 2:VAT due in this period on acquisitions from other EC Member States for EC Acquisitions and same to
Box 4:VAT reclaimed in this period on purchases and other inputs (including acquisitions from the EC)
I know it doesn't make any difference to the business financial statements but why the HMRC has not flagged it if the figure in box 2 is not 20% of the
BOX 9 : Total value of all acquisitions of goods and related costs, excluding any VAT, from other EC Member State
Another simple way
Portia Nina Levin wrote:Cretin.