VAT Disbursements
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Newuser1987
Posts: 176 Forumite
Hi All
I am having a slight panic as I have only just realised that the VAT threshold is a rolling 12 month period and not my tax year- tax year! (stupid I know)
Looking at my turnover this would have put me over 3 of the last 4 months. I knew I would be close by the end of my tax year but I didn't think to check as I had a quiet start to my last tax year.
However after doing a bit more reading I have a feeling some of my turnover would be classed as Disbursements and would mean I am below the threshold by about £10k or more.
The disbursements I am referring to are Planning Application fees. I am an Architect and charge clients for the planning application fee when I invoice for my services. This is clearly listed as a separate fee on my invoice and is for the exact amount of the application fee.
All the planning applications have the client listed on the applications and myself as the agent. Therefore I am only doing this for their convenience and from my reading this would be deemed a disbursement?
I am looking to get an accountant very soon but thought I would ask this question to hopefully put me at ease!
I am having a slight panic as I have only just realised that the VAT threshold is a rolling 12 month period and not my tax year- tax year! (stupid I know)
Looking at my turnover this would have put me over 3 of the last 4 months. I knew I would be close by the end of my tax year but I didn't think to check as I had a quiet start to my last tax year.
However after doing a bit more reading I have a feeling some of my turnover would be classed as Disbursements and would mean I am below the threshold by about £10k or more.
The disbursements I am referring to are Planning Application fees. I am an Architect and charge clients for the planning application fee when I invoice for my services. This is clearly listed as a separate fee on my invoice and is for the exact amount of the application fee.
All the planning applications have the client listed on the applications and myself as the agent. Therefore I am only doing this for their convenience and from my reading this would be deemed a disbursement?
I am looking to get an accountant very soon but thought I would ask this question to hopefully put me at ease!
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Comments
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This would be enough to get me finding an accountant sooner rather than later, but if you don't get a response soon then I'd ask the Board Guide here to move this to Cutting Tax.Signature removed for peace of mind0
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well done for actually understanding the difference between a disbursement and a mere recharge. Yes, given your line of work, planning application fees are a textbook example of a disbursement
a disbursement is not a "supply" made by your business to your customer and therefore is not part of your taxable turnover for VAT
when you do finally register you will not charge VAT on any disbursements you make, however, you will charge it on any recharges you make
https://support.sherwincurrid.com/index.php?/Knowledgebase/Article/View/134/3/Recharged-Expenses-to-end-clients-and-treatment-of-VAT0 -
Get an accountant. You can't afford NOT to have one.Eat vegetables and fear no creditors, rather than eat duck and hide.0
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