I have just sold part of my catering business as a going concern. The business was a mix of 70% catering (standard rated) and hot standard rated items as well as about 30% cold take-away (zero rated).
I paid VAT on my agent and solicitors fees which were fairly substantial. How much of this VAT am I allowed to claim back. I can't find a calculation anywhere. I know that if the business was all zero rated sales then I couldn't recalim any but this wasn't the case so I'd like to know how I calculate what VAT I can reclaim based on the split above.
There is a partial exemption calculator. Bascially the Value of Vatable sales divided by the total sales x 100 gives you the percentage of VAT you can reclaim.
I assume that you have read section 2.6 of VAT notice 700/9
Also, for partial exemption details refer to VAT notice 706
I assume that this is simply trying to get your head around matters yourself and you have an accountant working with the solicitors on your behalf as ToGC's can be a little complex.
I personally would not like to give advice about this which is why I simply refer you to the above documents as good reference points.
Hope that everything works out for the best,
Shaun.
p.s. as an aside don't simply assume that available exemptions are as simple as your exempt calculation. Also look up De Minimus limits.
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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.
The income from a TOGC is neither exempt nor taxable. And, I think that the distortive effect of the income should be excluded from any calculation. But do work through the Pt/Ex Notice carefully on this point.
Zero rated supplies are taxable, so that doesn't affect the amount of input tax you can claim.
PM me if you wish.
-- Edited by leshoward on Tuesday 3rd of March 2015 07:49:29 PM
