Self employment

[lurcherboy]

Throw away ANY reciept no matter how small or insignificant

 

 

 

 

LB

[Mungler]

LB, whatcha done?

 

I have been getting receipts for my shooting - client entertainment don't cha know.... and there's VAT to be had back.

[njc110381]

It's my last day of employment tomorrow

 

Don't throw away reciepts buddy, unless your accountant is a good lad they will just be taxed as personal spending! You can blag it to a point though, and just say you lost it. Most accountants will put the odd white lie in for you, mine does. My whole shed contents was put through without reciepts, got me a rebate last year

[naddan28]

Yes to an extent but as mungler says entertainment expenses are not tax deductable! Also, the depreciation charged on your assets (tools for example) not tax deductable, its replaced with an annoying capital allowance! That means extra working out, more provisions to be created and all so us accountants cant OVER estimate dpn to decrease our tax bills.

[Mungler]

I thought entertainment could be put down as a business expense and therefore put down as a cost of the business i.e. less profit to be taxed on.

 

The VAT back is the added bonus.

[dusk2dawn]

LB, whatcha done?

 

I have been getting receipts for my shooting - client entertainment don't cha know.... and there's VAT to be had back.

 

 

Revenue and Customs have recently been showing a great deal of interest in ALL shoots no matter how small, we believe there is dirty work afoot and they will be clawing back payments for unpaid tax.

It will undoubtably mean the end for alot of "organised" shooting. D2D

[Mungler]

LB, whatcha done?

 

I have been getting receipts for my shooting - client entertainment don't cha know.... and there's VAT to be had back.

 

 

Revenue and Customs have recently been showing a great deal of interest in ALL shoots no matter how small, we believe there is dirty work afoot and they will be clawing back payments for unpaid tax.

It will undoubtably mean the end for alot of "organised" shooting. D2D

 

 

 

That's something else.

 

If you go to an established clay shoot it is likely to be VAT registered and they will be able to provide you with a VAT receipt for your shooting - Braintree, Fyfield and Dartford for example.

 

The current hoo-ha about VAT and shooting is that the VAT man is saying that farms that offer shooting (e.g. driven days, syndicates and leasing of shooting rights) ought to be charging VAT on those deals.

[naddan28]

Yes assuming the turnover for a shoot is over 61K it should be vat registered:

 

http://www.basc.org.uk/content/tax_and_shooting

 

However, I have always wondered whether farmer's can claim vat back from firearms as a legitimate business exp? I would be inclined to say yes as I know lots of friends who before going to uni got there laptops from the family business to escape the VAT man! :@ Customs & revenue along with the IASB (International Accounting Standard Board) are pushing for some much disclosure from the profession that their is little scope for creativity nowdays. Some would argue its a good thing, althou it does make it a lot easier for anyone to become a decent accountant, as their is little op for creativity and a lot more codified ( i think thats the right word, well in a legal context it would be) approach to the standards.

[Blackbart]

Yes assuming the turnover for a shoot is over 61K it should be vat registered:

 

http://www.basc.org.uk/content/tax_and_shooting

 

However, I have always wondered whether farmer's can claim vat back from firearms as a legitimate business exp? I would be inclined to say yes as I know lots of friends who before going to uni got there laptops from the family business to escape the VAT man! :@ Customs & revenue along with the IASB (International Accounting Standard Board) are pushing for some much disclosure from the profession that their is little scope for creativity nowdays. Some would argue its a good thing, althou it does make it a lot easier for anyone to become a decent accountant, as their is little op for creativity and a lot more codified ( i think thats the right word, well in a legal context it would be) approach to the standards.

If your accountant cant think of ways and means change accountants.You pay them a lot of money to save money,not pay more.Anagram of LOT MORE CODIFIED..........................I CE ROOM TO FIDDLE...

[naddan28]

Yes assuming the turnover for a shoot is over 61K it should be vat registered:

 

http://www.basc.org.uk/content/tax_and_shooting

 

However, I have always wondered whether farmer's can claim vat back from firearms as a legitimate business exp? I would be inclined to say yes as I know lots of friends who before going to uni got there laptops from the family business to escape the VAT man! :@ Customs & revenue along with the IASB (International Accounting Standard Board) are pushing for some much disclosure from the profession that their is little scope for creativity nowdays. Some would argue its a good thing, althou it does make it a lot easier for anyone to become a decent accountant, as their is little op for creativity and a lot more codified ( i think thats the right word, well in a legal context it would be) approach to the standards.

If your accountant cant think of ways and means change accountants.You pay them a lot of money to save money,not pay more.Anagram of LOT MORE CODIFIED..........................I CE ROOM TO FIDDLE... :o

Sorry i think you have got confused, what I am saying is that I study accounting and since 1970's where no standards existed things have become a lot more watertight. I am not saying their is no space for "fiddling" just the scope is far less. Also, A lot of what I am talking about won't really effect any of the small businesses, the IASB have been making things harder for income smoothing and off balance sheet financing something that is only really worthwhile for PLC's, unless your a sole trader trying to get more credit.

 

I am not saying accountants cant fiddle, but lawyers have a lot to do with it as well now, as it is more about loopholes then anything else. Then obviously as the loopholes are sewn up there is less scope for abuse. Which in the end you have a legal system like france where the majority is written in statautes and legislation. Where as in england a lot of law is dictated in the form of case law, which is based upon previous law cases from higher courts in the hierachy. This should be all correct, mungler?:unsure:

[Highlander]

Throw away ANY reciept no matter how small or insignificant :unsure:

LB

 

Amazing how people jump to conclusions...how do we know LB was talking about tax/vat man troubles, he might have got caught by the rotti with a receipt for that gift he bought the mistress or worse...the packet of condoms he bought from Tescos at the weekend :o

[Axe]

Only that the title says What NOT to do. :unsure: :o

[naddan28]

Only that the title says What NOT to do. :unsure:

lol :o

[Dr W]

I thought entertainment could be put down as a business expense and therefore put down as a cost of the business i.e. less profit to be taxed on.

 

The VAT back is the added bonus.

 

You can't claim entertainment as a tax deduction, you might be able to put it down as marketing or promotion but if you had an inspection by HMRC it would be discovered and it would be added back.

 

With regard to VAT SI 1992/3222, Art 5(1) says

 

VAT charged on any goods or services supplied to a taxable person or on any goods acquired or imported by him is excluded from any credit where the goods or services in question are used or to be used for the purpose of 'business entertainment'.

 

Basically corporate hospitality is entertaining and therefore disallowable for tax and VAT.

[pavman]

Wat r ya !

[Mungler]

I thought entertainment could be put down as a business expense and therefore put down as a cost of the business i.e. less profit to be taxed on.

 

The VAT back is the added bonus.

 

You can't claim entertainment as a tax deduction, you might be able to put it down as marketing or promotion but if you had an inspection by HMRC it would be discovered and it would be added back.

 

With regard to VAT SI 1992/3222, Art 5(1) says

 

VAT charged on any goods or services supplied to a taxable person or on any goods acquired or imported by him is excluded from any credit where the goods or services in question are used or to be used for the purpose of 'business entertainment'.

 

Basically corporate hospitality is entertaining and therefore disallowable for tax and VAT.

 

 

(coughs) Marketing, right you are (coughs).

 

Now is it tax deductable and can I get the VAT back? :unsure:

 

 

 

P.S.

 

Very useful that Dr. W - nice one.

[Dr W]

No worries, It's not a route I'd recommend but at the end of the day the accounts and tax are your responsibility, it's our job to tell you what can be done but we can't force you to do something.

 

 

And before anyone accuses me of being a geek, I went and looked up the answer I certainly do not know the Statute references off the top of my head.

 

Oh as a side issue if you tell a professional person (when they are acting in that capacity i.e not down the pub) that you're doing something illegal and by which you will profit, they have a duty to report you to NCIS under proceeds of crime, just be careful what you say to people.

 

 

Pavman, I'm a chartered accountant but find surfing the internet and pigeon watch website more fun than doing tax comps or the like. Speaking of which I better get on with this job planning befor the whole days gone and I have nothing to put on my timesheet.