Hi everyone and apologies for being so distant, work has been really busy. Just a quick question on behalf of a friend of a friend. They have a sandwich bar and are VAT registered, they have been told they cant claim back all the vat on the rent and only a proportion as it is in relation to the proportion of sales. Surely its irrelevant?
They have been told....by whom? If it's by anybody less than an Accountant, great bookkeeper with extensive vat knowledge or a VAT expert, tell them to stop listening to their mate down the pub and pay for proper. professional advice. If it's by an Accountant ask them to ask that Accountant for what part of the vat act covers the advice they have been given....specifically.
I suspect they are mixing up terminology. Have we got the full story here. Why is a proportion of the rent applicable to the proportion of the sales? What else is the area being rented being used for and by whom?
On what basis in law do you consider the correct answer to be?
The questions are just ponderings.
-- Edited by Cheshire on Friday 29th of November 2019 07:10:06 AM
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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
Hi Jo, it was a very brief message so I dont have the full details until Monday, just thought it was a bit bizarre. As far as I am aware it is sole use of the property and their bookkeeper told them about the VAT.
