If its a van and its used soley for the purpose of the business, say for instance a plumbler who can't do his job without a van, if hes VAT reg then he can claim the VAT back. I had a client who bought a van when he was starting up before he was VAT reg and when he went VAT reg the accountant told me to reclaim the VAT back on his van. (It was within the 3 years rule).
So I would say yes if your client is VAT reg and used soley for business. Not sure about cars though. I sure someone on here will correct me if I am wrong and also advise you on the cars.
Thank you, so when you reclaimed the vat after he went vat reg.. did you just add it into the purchases section. I just wanna check to make sure im on the right lines.
Sorry to be the bearer of bad news. For cars VAT is non recoverable.
There is an exception in that if the car is a pool car used 100% for business use then VAT is reclaimable. However, you must be able to evidence 100% business usage and that the car is not used by one person for the bulk of the time making it unavailable as a pool car.
Hope that this helps,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
it's a complicated area with exceptions and variances dependent upon how HMRC classifies the vehicles which with four wheel drives isn't always as one would assume.
For example, the land rover Defender is a car not a van but if it is the variant with more than nine seats then its a minibus!
And with a pickup, if it has a single row of seats its a van but if it has a double cab it's a car!
Then load bearing capacity gets thrown into the mixing pot.
So, as you can see, it's one of those area's where the client needs to really know what they're doing before making a purchase.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Varies greatly year to year but normally considerably more than that. Most of it comes from banking though rather than accountancy.
The bookkeeping so far is really just pin money but I have great hopes for that side of things.
Have a read of some of Robs posts related to his various enterprises and it will definitely inspire you as to where bookkeeping can take you with the right application and frame of mind.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Blimey i was only kidding, lol. I do have other business ideas to but guess wat it always take a little bit of money start up which i never have so, im sure one day my time will come. It is my aim to make loads of moneey ffrom businesses owning, running, selling etc etc.. Im still young so a lot to learn i guess...
money is one of those things that comes along when you are not looking for it.
If you have got loads of ideas don't spread yourself too thinly. Concentrate on getting just one off the ground before starting on the next. Hopefully if you get it right one business will support the launch of the next (basic product life cycle theory applied to the business model).
Also, it's not what you make but what you keep that matters. Someone with a 100k turnover and only 1% profit is making less than someone with £10k turnover and 20% profit. Keep your sights fixed on the bottom line, not the top one.
Concentrate on the skills and money will follow. Good to see that you've chosen the AAT route which makes you infinitely more employable than some of the alternatives.
If I had to give one piece of advice it would be that if you don't enjoy a business then no matter how good the idea it will never be a success as your hearts not in it.
Wishing you every success with your endeavors.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
