After re-reading the notes a few times it clicked. Why do they make the wording to crazy? Apparently if the VAT on the plant etc is less than £1000 nothing needs to be paid back.
Kris
-- Edited by kjmcculloch83 on Tuesday 21st of February 2012 03:03:30 PM
I have a client who fell below the deregistration threshold for VAT last year, and will do the same this year. They are in the building trade and have lost a lot of contracts recently. They've changed from doing a lot of subcontracting to doing private jobs.
I have completed most of the VAT7 form, but I'm not sure what box 17 is asking. It says "Please estimate the total VAT inclusive value of stocks and assets you have on hand on which VAT is due. This includes the value of the property on which an option to tax has been made and VAT has been reclaimed"
It's probably something simple but as always overworded by HMRC. Any ideas?
It means if hes got a Van that hes already claimed the Vat on you will have to pay the Vat back, I think at current value of van. Also Tools etc, like large power tools, some drills can be several hundred pounds worth. Also if hes got stock lying around, although I doubt that one as he probably buys stuff per job.
I'm sure someone on her like Shaun will be able to clarify this for you.
