I am new here but hoping someone may be able to help me.
I am helping someone by doing there bookkeeping and vat returns.
Bit of history his dad passed away in March and he continued to run the business but his dads bank account was not used from the date he passed away. the dad had always used his personal account as a joint business account as well. The son carried on running the business using his personal bank account to pay any money from sales in to his account and also paid some of his dads supplier invoices as he wants to continue to trade with them.
He then changed the company VAT number from the 1st June 2015. I have set sage up with the start of the financial year as the 1st June. what I am wondering is can I put the supplier invoices in to sage for the period between when his dad passed away and the 1st June so that I can claim the VAT back or not? I will check that he actually paid the invoice from his bank account.
let me know if you require any more information to be able to answer my question:)
Welcome to the forum A few questions spring to mind, such as - has he just changed the name on the VAT to himself or set up a new one? - what was the position in terms of the cash held/debtors/creditors/assets/liabilities when the son 'acquired' the business - how does that get resolved with the father's estate - is the start of the financial year correct? Am thinking it might not necessarily be from date of VAT registration - as who was benefitting from any business between March and June.
I think this is one case where you need to get an Accountant on board for sorting out the position of who owns what at the date of the Father's death.....it might not be the son and he could face a claim from family if this isnt done right.
-- Edited by Cheshire on Tuesday 2nd of February 2016 07:15:27 PM
__________________
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
thanks for the reply. He has setup a new VAT number under his own name and kept the company name the same. He said he was advised to do this by an accountant so that he isn't liable for anything done under his dads VAT number.
The son has benefited from all business since his dad passed away. most suppliers are on account so payments paid in March, April relate to sales his dad done. His customers also have 30 days to pay their invoice but some have taken much longer so some of the money received has been work his dad completed.
If his dads accounts hadn't been settled I would of billed him for any supplier invoices that have been paid that related to him and taken off the sales received also relating to his dad but as his accounts have been settled I am unsure what to do. It has been suggested that I input march, april and may in to sage but date the transactions as the 1st July so that they are included in his first VAT return?
So when you say the company name - we are talking a Limited company? Of which the son was a shareholder and director? Or do you just mean sole trader?
Also - when I asked about who has benefitted what I was getting at was - was their a will to determine what happens with any monies, assets etc. Did he die intestate, does it need to go to probate. He cannot just assume command of someone elses business even if that person is not there to contest it....there may be other people just as entitled.
If I were you I would be speaking to his Accountant before you key anything else and getting his update on just what is happening, then you can discuss what income is the estate's and what is actually the sons, plus the same with any liabilities. Plus if you have only registered the new VAT since 1 June, you need to check if you can actually include the previous invoices etc in the return at all, using the normal rules, should the conversation with the Accountant confirm they are indeed now related to the new business.
__________________
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
