I have a customer who has three companies, all VAT registered all running payroll systems. Some of the staff work for two of the companies so the expenses reflected in the companies is not as accurate as the owner would like
They have set up a holding company and will run all payroll through that company with chargebacks to the subsidiary companies dependent on who has worked where/when. The holding company is not VAT registered although the Accountant has suggested to the owner that it should be.
Im at a loss to understand why it should be VAT registered. Can anyone explain please?
I know if it is VAT registered that we would need to include the VAT on the chargeback invoices and then we could claim that VAT back through those subsidiaries, so overall its a net nil across the Group. But if its not VAT registered then its still a net nil figure with much less hassle. Confused.com!!!
(Unless the owner has discussed doing something else I dont know about of course!)
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
