Pool car insurance states "Social, domestic, pleasure, business", the insurer explained that business part comes as an addition, and social, domestic, pleasure use as standard.
HMRC reply: "I refer you to VAT Notice 700/12 how to fill in and submit your VAT return.
In particular, paragraph 3.8 filling in box 7 which says that you must show the total value of your purchases and expenses but leave out any VAT.
Therefore, any goods and/or services you make payment for would be included in box 7."
"6.1.1 Taxable supplies
Supplies of any goods and services, which are subject to VAT at any rate, including the zero rate and reduced rate, are called taxable supplies. They are called taxable supplies whether you are registered for VAT or not."
"6.1.2 When VAT registration is required
If you are registered for VAT, you must charge and account for VAT on all your taxable supplies from the date that you are first registered."
"3.2 What is VATSupplies are outside the scope of the tax if they are:· made by someone who is not a taxable person· made outside the UK and the Isle of Man (but see paragraph 4.8.3 for special place of supply rules for certain international services)· not made in the course or furtherance of business”
"Value Added Tax ACt "4 Scope of VAT on taxable supplies.
(1) VAT shall be charged on any supply of goods or services made in the United Kingdom, where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him.
(2) A taxable supply is a supply of goods or services made in the United Kingdom other than an exempt supply.""
The problem in our case is that it is thousands of GBP.
I don't become richer or an accountant by asking these kind of questions. Neither none of the forum participants become poorer or less competitive.
I completely understand and agree with what you mean. We are not happy with our accountants work so that's why I'm asking here to make sure for myself before talking to them. Changing them is not an easy process and after all we are still responsible for everything in the company.
So please any advice is welcome. Thank you.
Im doing this for investors so need to use something more or less official, although I personally completely agree with you)
1. we are a UK company
2. No, we dont have overseas branch. The owner has initially established company in Russia, 20 years ago. A year ago he decided to see whether there is anything similar in the UK, which he didnt find so he established the same company in the UK, which is the company I work for. As production in Russia is cheaper some parts of our product are made in Russia. Basically, both companies produce same product, but company in Russia does it for their market and our UK company does it for the UK market.
3. "work done" is completed by the UK company in a Russian company. UK and Russian companies are not related to each other except for the same owner.
4. Goods will be sold in the UK.
5. we plan to sell to customer worldwide
6. company is VAT registered
7. for imports for parts of the product from Russia
Thanks a lot!