VAT help!

Rt_Rev_Buthelezi

I've browsed these forums on and off but it's my first post so go easy on me! And hopefully this is in the right place too.

I have a background in finance after working 15 years in a private bank so I recently volunteered as treasurer for my local darts league and..... wow. There were no monthly reconciliations, in fact no accounts at all. The end of year 'accounts' that were given to all members/players were worked backwards. 'We have this amount in the bank, so we must have spent this on trophies, this on expenses and received this through sponsorship... still doesn't balance? Let's change the amount of registered players so it's only a £1 or £2 out'. It was a bit like using the 'goal seek' function in Excel.... Yeah... this was the first thing I've corrected!

Anyway, my question is concerning reclaiming VAT from suppliers. I've only really skimmed this in the past and am by no means an expert. I've put together a VAT register but I have a few questions. Some may seem silly and obvious so I'm glad I'm asking anonymously!

1. We have a company bank account but I think it was opened many moons ago when the KYC wasn't as strict. Do we need to be registered with Companies House before we can reclaim VAT?

2. How far back can I go to reclaim VAT paid?

3. I know travel is VAT exempt, but what about refreshments reclaimed on expenses for officials during our tournament finals event?

4. Possibly most importantly of all, I've managed to get hold of a large invoice of £3000+ for our trophies at the end of the season. However, the bill doesn't seem to have any VAT charged, nor a VAT reg number. I've recently found out that it's been a regular supplier for our trophies and their website links to an eBay shop (yeah, I know). Will I be opening a can of worms that could cause us a lot of trouble if I start to try to reclaim anything?

Re 4, I know you can only give advice as to what's correct and what's not, I suppose it's more about whether it's worth me trying to reclaim anything.

I hope that makes sense - any help or advice you can provide is mich appreciated.

00ec25

you seem to want to sprint before you can crawl

1. is the company registered for VAT (with HMRC not Co hse)?
No = forget about claiming anything.

2. what is the turnover of the the company? >£85,000 then it is mandatory that is must register for VAT and will be fined if it is late doing so.

3. turnover <£85,000? Why would it want to register for VAT? Will members thank you for having increased the price they pay by 20% ? You cannot recover VAT on your purchases unless you charge VAT on your sales. VAT works in "reverse" - it is what you sell that determines whether you can recover anything in the first place.

4. if you get to the stage of being a VAT registered company then go on a training course so you understand what is, and is not, a valid VAT invoice.

uknick

Have you looked at the corporation tax aspect of the league? If you have a turnover of more than £50k the league may be liable for CT on its profits.


I'd think it's nowhere near this, but you said they spent £3k on trophies. My local cricket club had a turnover of about £2k per year and could only afford about £30 for trophies each year.

antrobus

Rt_Rev_Buthelezi wrote: »

..I hope that makes sense - any help or advice you can provide is mich appreciated.

You are (I believe) the treasurer of an unincorporated association.

https://www.gov.uk/unincorporated-associations

There is VAT Notice 701/5 which deals with clubs and associations
https://www.gov.uk/government/publications/vat-notice-7015-clubs-and-associations

My advice would be; unless your turnover is over the limit (£85k?) forget about VAT; and don't even consider registering as a company.

Focus on getting some proper bookkeeping in place.