one of our staff is on tax code BR, and she has not tell me what the tax code she got from HMRC. I am going to pay her Paye and Ni. When i input her wages, I use tax code BR and not on 1st week basis. Is this OK? When do I use first week/ month basis?
2, VAT
my company is VAT exempt, and VAT registered, we are supposed to claim back the expenses' VAT. So i checked on HMRC, it states that I can claim back purchases VAT. Is the purchases VAT including the VAT of capital expenditures and other expenses such as accountancy fees?
3, when I do bookkeeping, do I keep the anaylsis columns in total, or in net amount?
I'm not going to answer all of your questions. I'll just focus on the second one.
You are VAT exempt but VAT registered?
If you are VAT registered then surely that means that not all services that you offer are VAT exempt as VAT exempt businesses are not able to reclaim VAT on purchases or expenses.
If partially exempt there are special rules where you may be able to claim VAT on expenses.
Before going into those rules please clarify your VAT status as your statement that your business is VAT exempt would lead me to believe that you should not be reclaiming VAT at all.
Did you mean that your supplies are zero rated rather than exempt?
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.
one of our staff is on tax code BR, and she has not tell me what the tax code she got from HMRC. I am going to pay her Paye and Ni. When i input her wages, I use tax code BR and not on 1st week basis. Is this OK? When do I use first week/ month basis?
Don't overthink tax codes. They aren't a matter of choice for you. You only act on instructions from HMRC or official documents.
When you have a new starter they either give you a P45 or you get them to fill in a P46. In either case that document tells you what tax code to use. (including whether or not to use on W1 basis).
If HMRC thinks employee has wrong tax code they will tell you to change it using a P6 document. Don't act on any other document (eg a letter from HMRC to the employee)
Thanks for answering my question. I am also confused on this. as the restaurant is in the student union, we have a VAT man worked for the Student Union. so he registered VAT for us and telling us our sales can be exempt VAT. I better call HMRC to find out!
Don't overthink tax codes. They aren't a matter of choice for you. You only act on instructions from HMRC or official documents.
When you have a new starter they either give you a P45 or you get them to fill in a P46. In either case that document tells you what tax code to use. (including whether or not to use on W1 basis).
If HMRC thinks employee has wrong tax code they will tell you to change it using a P6 document. Don't act on any other document (eg a letter from HMRC to the employee)
Hopefully this is a case of misinterpretation of advice by the client rather than another case of lack of understanding by someone putting themselves accross in a VAT advisor capacity.
__________________
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.
