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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> do they need to charge VAT
Post Info TOPIC: do they need to charge VAT
Meadowlands


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do they need to charge VAT
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I think I know the answer to this but wanted to ask the collective what they thought.  I have a client who is having cash flow issues so have sold their name and database to an investor who will sell it back when the cash flow situation is resolved.   The company is VAT reg.  

 

The company name belongs personally to the Director but the database is the company's (if that makes sense).  The money has been paid into the company's bank account Should there be VAT on this "sale"?

I think it is liable for VAT but not 100% certain

Thanks in advance



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Alison - Simply Balanced Solutions
Shamus


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Its not a sale its a secured loan similar in principle to a sale and leaseback arrangement.

No assets should be removed from the clients books. Recognise the money from the investor as a creditor. VAT is not applicable as no sale has taken place.



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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.
Meadowlands


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Thanks Shaun, I did wonder if I was missing something.

Have a great weekend

Alison

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