Member Since: 30th Mar 2016
Director Chispa Bookkeeping Ltd
4th Aug 2021
I agree it is worse than useless. Not only are there are insufficient HMRC advisers but the system is that you need to be glued to the screen to check if the link appears. Which means that you cannot do anything else for fear of missing the link if it should appear. I just wonder if it just is not working at all, like you surmise. HMRC probably wouldn't even tell us if it wasn't.
22nd Oct 2020
Quite agree. The rental deposit on the Lease Completion Statement was £6000 (£5000 +VAT Retention £1000) + VAT of £1000, i.e., £7000. All opinions concur that no tax point is created with a deposit hence additional VAT should not have been charged. HMRC point me to VAT Guide 14.2.3 14.2.3 Deposits
"Most deposits serve primarily as advance payments and will create tax points under paragraph 14.2.2(a) when you receive them. But some types of deposit are not a consideration for a supply and their receipt does not create a tax point.
For example, if you take a deposit as security to ensure the safe return of goods you have hired out, and the deposit is either refunded when the goods are returned safely or forfeited to compensate you for loss or damage, then no tax point is created.
Also, if a third party acts as a stakeholder (as opposed to an agent of the vendor) in a supply of property and receives a deposit, then no tax point is created until the money is released to the vendor."
Second para is the crucial one. Therefore, they were incorrect in levying additional VAT.
My view is that they should refund £7,000.
To explain without complicating matters, the initial lease was an assignment to us of someone else's, i.e. it is an inherited position. The property company argue that the figures were validated by their accountants but I cannot see that they were anything other than plain wrong. Looks like I will need to pass it through the small claims court to affirm the debt, as we are £2000 out of pocket.
22nd Oct 2020
Yes we paid £7000. We were not vatable. No no VAT invoice received.
22nd Jun 2020
Just to close this off, having now filed, I will share my solution. I found a company on-line offering iXBRL conversions (from pdf in my case) at £6 a sheet but with a week's turnaround. I was a somewhat annoyed though that Andica's software was not able to deal with this and I had to find a solution elsewhere. Plus their support was not exactly helpful.
27th May 2020
I too am preparing my first property company CT600, with no other trade. Can someone comment that if a mortgage is a non-trade loan, whether the loss (deficit) from the non-trade loan relationship should be shown at box 260 (non-trade deficits) or at box 275 (trade losses), the latter as originally proposed and later verified by the reply. I agree Box 795 is for non-trade deficits but question whether there should be a trading loss. Or is there some reason why this treatment was used?
24th May 2017
I too have been struggling in entering a trading loss. The software does not allow me to enter a minus sign in the profit box (nor anywhere else), nor to enter a trading loss or capital allowances in the appropriate boxes due to the same validation issues as above. I cannot even get a zero in the profit chargeable to Corporation Tax. I am emailing the suppliers right now.
27th Mar 2017
Thanks for your response. I can see that my description wasn't clear enough. In fact, B had already been vat registered for some years, while A has never been registered for VAT and does not want nor need to be due the nature of its business.
So it isn't a question of claiming vat before registration.
I shall amend the description accordingly.