Thanks alot for your answer - sorry to be dim - which penalty still stands? the Companies House late filing penalty or are we talking the HMRC CT penalty?
Thanks a lot for your input Les - much appreciated.
I have searched the usual manuals of HMRC, and dug out the following:
'A company can claim VAT on those goods and services if the tax relates directly to the business to be carried on by it following incorporation and registration for VAT. The six-month limit in respect of services and the four year limit for goods also apply to pre-incorporation claims.'
The above is obviously much easier to apply if John Smith is a sole trader, and then sets up 'John Smith Ltd' to carry on the same trade. It's purely under the circumstances of two sole traders incorporating a company together that made me question whether you could still apply the above.
Hi Arthur - thanks for replying. The idea was that if an employee was paid say £1,000 for the first 2/3 of the month and then £500 for the final 1/3 of the month, the correct procedure was to put a gross amount on the payslip of £1,000 + £400 = £1,400 - the reason being that HMRC would reimburse £400 (that being 80% of the usual gross pay).
Are you thinking that you should still enter £1,500 on the payslip, even if the employer is not topping up the remaining 20% out of their own pocket?
Hi there I have had the same experience many times. I ended up phoning HMRC on agents dedicated line and an individual processed manually for me over the phone, which went through no problem!
My answers
Thanks alot for your answer - sorry to be dim - which penalty still stands? the Companies House late filing penalty or are we talking the HMRC CT penalty?
Hi there - that is the only gain made in the year - no other transactions
that's extremely helpful - thank you for taking the time to post
If business to business, the location of the supply of goods will be the important factor, which is the South of France, so a zero rated supply.
Thanks Thomas - can this also be done by checking the 'Cessation of qualifying activity in this period?' box on the CT return?
Hi John - thanks very much for taking the time to reply - your guess is correct - trade and assets
Thanks a lot for your input Les - much appreciated.
I have searched the usual manuals of HMRC, and dug out the following:
'A company can claim VAT on those goods and services if the tax relates directly to the business to be carried on by it following incorporation and registration for VAT. The six-month limit in respect of services and the four year limit for goods also apply to pre-incorporation claims.'
The above is obviously much easier to apply if John Smith is a sole trader, and then sets up 'John Smith Ltd' to carry on the same trade. It's purely under the circumstances of two sole traders incorporating a company together that made me question whether you could still apply the above.
Hi Arthur - thanks for replying. The idea was that if an employee was paid say £1,000 for the first 2/3 of the month and then £500 for the final 1/3 of the month, the correct procedure was to put a gross amount on the payslip of £1,000 + £400 = £1,400 - the reason being that HMRC would reimburse £400 (that being 80% of the usual gross pay).
Are you thinking that you should still enter £1,500 on the payslip, even if the employer is not topping up the remaining 20% out of their own pocket?
Hi there I have had the same experience many times. I ended up phoning HMRC on agents dedicated line and an individual processed manually for me over the phone, which went through no problem!
Thanks so much for the response. That’s really helpful!