Accountancy query

Suzzette

Hi,

I have received a quote for my van from a used vehicle garage for a sale price, in order to repay vat on the second hand value.

However, this is different to what my accountant came up with by guesstimating (and reducing the new price by 20%) now they want me to prove this valuation from the garage?

Do HMRC get documents submitted? Must I prove to my own accountants the used sales price?

Is it easy to change accountants when vat registered and also planning to deregister after the next quarter.

Any help appreciated

Pennywise

You don't have to prove anything to your accountant - they act for you and should do what you tell them (unless illegal of course). If you tell your accountant to use a certain value for your accounts/returns, then that's the end of the matter. They may query how you arrived at the figure to make sure you understand the principles involved, but they're in no position to make you provide them with proof.

At the end of the day, your tax returns are your responsibility and you bear the consequences if they are wrong.

If the accountant refuses to use your valuation which you genuinely believe is correct and could be proved to HMRC, then it's time you got a new accountant. Yes, it's easy to change accountants at any time - a good accountant will deal with the changeover and make sure no deadlines are missed.

Suzzette

Hi Pennywise,

Thanks for the reaffirmation - I thought I was going crazy.

The quote is a legitimate market value for a used van from the dealer I bought it from.

When I gave the accountant this information and suggested they use it, then they wanted me to give them written evidence.

Do you know who I complain to about this kind of behaviour I have experienced.

Thanks
Suzz

zygurat789

Suzzette wrote: »

Hi Pennywise,

Thanks for the reaffirmation - I thought I was going crazy.

The quote is a legitimate market value for a used van from the dealer I bought it from.

When I gave the accountant this information and suggested they use it, then they wanted me to give them written evidence.

Do you know who I complain to about this kind of behaviour I have experienced.

Thanks
Suzz

In order to reclaim input VAT you have to have a Vat invoice for the item which will include such items as the vendor's VAT registration number and the amount ou VAT which the vendor is receiving in the sale and you can claim as input tax. You have to be in possession of this document to claim and a quotation simply will not do, it HAS to be a VAT invoice.
Your accountant is only looking after your interests ensuring that you don't overclaim.

Pennywise

Suzzette wrote: »

Do you know who I complain to about this kind of behaviour I have experienced.

You don't, you just move to another firm.

If they are regulated by a professional body, such as chartered, then you could complain to the professional body, but it's very unlikely that they'd bother to investigate or discipline what is a relatively minor matter in the big scheme of things.

Best way to deal with poor accountants is to walk with your feet.

zygurat789 wrote: »

In order to reclaim input VAT you have to have a Vat invoice for the item which will include such items as the vendor's VAT registration number and the amount ou VAT which the vendor is receiving in the sale and you can claim as input tax. You have to be in possession of this document to claim and a quotation simply will not do, it HAS to be a VAT invoice.

I read the question to mean that the OP wanted to repay VAT, not claim it, i.e. such as on VAT deregistration or transfer of the vehicle out of the business to private ownership. Perhaps the OP could clarify the reason for wanting a valuation in the first place?

Suzzette

Thanks again Pennywise

Yes I was told by my accountants that on deregistering for vat I would need to repay vat on the van I purchased last year.

I was told it was the second hand value. The accountants came up with a figure (10K more than the used dealers valuation) by just deducting 20%. However, as I have had many issues with this firm mainly to do with vat, I decided to get my own valuation on its worth from the garage who sold it to me new.

When I told my accountants to go with the used dealers valuation this was when they demanded written evidence!

Elaine_Wilson

Their attitude may have something to do with the previous issues you have had.

However, in these circumstances I often request a copy of any valuation. But this is mainly because some of my clients are likely not to be able to find the original if the matter should be queried.

But I wouldn't refuse to go ahead without it unless the dealer's valuation seemed ridiculous.

zygurat789

Pennywise wrote: »

You don't, you just move to another firm.

If they are regulated by a professional body, such as chartered, then you could complain to the professional body, but it's very unlikely that they'd bother to investigate or discipline what is a relatively minor matter in the big scheme of things.

Best way to deal with poor accountants is to walk with your feet.



I read the question to mean that the OP wanted to repay VAT, not claim it, i.e. such as on VAT deregistration or transfer of the vehicle out of the business to private ownership. Perhaps the OP could clarify the reason for wanting a valuation in the first place?

It makes all the difference when you get the full storey.

longforgotten

Anything to do with vat I think it's best to have paperwork.

I therefore do not consider it an unreasonable request by your accountants. It covers everyone's back, yours and theirs, should the vat man come calling

nomunnofun

longforgotten wrote: »

Anything to do with vat I think it's best to have paperwork.

I therefore do not consider it an unreasonable request by your accountants. It covers everyone's back, yours and theirs, should the vat man come calling

I would agree. However, it appears that there may have been other issues or concerns regarding the accountant previously which may be attributable to the dounts of the op regarding the service. If that is the case, time to move on!

Suzzette

aha yes should the vat man come calling…

then thanks to my accountants who did not claim back 6 months services prior to registration because

and i quote "can you prove rent on premises, telephones and accountancy fees contributed to sales, post registration".

This was the answer when I queried why they had not claimed in my first vat return… (and have not claimed to date) so should he come calling he owes me a few!