Hi ???
So hows about an intro before we start. We always ask newbies!
Usual stuff - what prof body do you belong to, do you work for yourself or in a practice/ firm, are you a bookkeeper or accountant, what qualifications, how long in role, where up to in your studies-what exams passed/with what body/in midst of doing, where based, what you did before this role? That so of thing. Helps get to know you but also how best to pitch answers.
Also can you please add your first name to your profile so that we dont call you 'oi you' when we chat!
Is the fuel all fully 'allowable'? What are the circs for you not re-claiming or at the very least using the fuel scale charge?
Given your forum name it might be worth adding something more specific on the circumstances/background of this client.
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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
If not claiming on any of the actual fuel payments, will you be using the mileage method? If yes, I would NOT include the actual fuel payments in Box 7, but I would include the net mileage adjustment (eg: 100 miles at 12p giving £12 gross adj, I'd put the £2 in Box 4 and the £10 in Box 7).
Would be interested to hear other people's thoughts on this though - although during inspections they have occasionally compared Box 6 to submitted year end accounts, HMRC never seem to bother about Box 7... I still want to know what I'm putting in there is the right thing!
Hi Faye
When an initial intro has been requested from new members, or indeed a request for FI, please give them time to respond before answering their questions.
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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
I am ACCA qualified and I have worked in an agricultural accounting practice for 10 years but i find that sometimes there are niggly bits of VAT legislation that can be very difficult to interpret or find a definitive answer to.
With regard to my VAT query, a farmer does not want to claim VAT on fuel he is putting into his personal/business car as the VAT FSC makes this impracticable (more than the VAT he would reclaim). He will not be looking at the mileage method as he does not keep those kind of records and therefore opts not to claim any VAT on the expense at all. A private proportion of the fuel costs will be adjusted for when the accounts are prepared but for VAT purposes although he is purchasing a taxable supply he will not be reclaiming any VAT therefore i assume this gross/net amount of fuel should be included within box 7?
Similarly if a business purchase is made from a non vat registered trader, is the gross amount of this expense included within box 7? There seems to be mixed opinions on this when reading other forums.
I am ACCA qualified and I have worked in an agricultural accounting practice for 10 years but i find that sometimes there are niggly bits of VAT legislation that can be very difficult to interpret or find a definitive answer to.
With regard to my VAT query, a farmer does not want to claim VAT on fuel he is putting into his personal/business car as the VAT FSC makes this impracticable (more than the VAT he would reclaim). He will not be looking at the mileage method as he does not keep those kind of records and therefore opts not to claim any VAT on the expense at all. A private proportion of the fuel costs will be adjusted for when the accounts are prepared but for VAT purposes although he is purchasing a taxable supply he will not be reclaiming any VAT therefore i assume this gross/net amount of fuel should be included within box 7?
Similarly if a business purchase is made from a non vat registered trader, is the gross amount of this expense included within box 7? There seems to be mixed opinions on this when reading other forums.
Would be great to know other peoples thoughts..
Many thanks for your time
Liz
Hi Liz
Playing devils advocat and quite aside from the how you work out the personal proportion (which cannot be the same each year as this could come under scrutiny from HMRC), how would you decide what to include as 'expenses' from the fuel as you approach each VAT period, given the personal element is therefore not a business expense and therefore could be deemed outside the scope.
Ive not dug around the actual VAT act - sorry no time at the mo.
__________________
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
Cheshire - apologies, I'm not familiar with forums where users have to introduce themselves on a personal level before questions are answered (further info on the actual question is understandable, however). The other ones I'm involved with have a separate introductory section if required but mostly it's just quick firing Qs and opinions.
-- Edited by fin6y on Tuesday 9th of May 2017 09:10:06 AM
will you be using the mileage method? If yes, I would NOT include the actual fuel payments in Box 7, but I would include the net mileage adjustment (eg: 100 miles at 12p giving £12 gross adj, I'd put the £2 in Box 4 and the £10 in Box 7).
Hi,
Can I ask you to clarify your comment please?
I don't understand.
Thanks
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
Don't worry Johnny, ignore me :) I didn't see the OP's reply where they've specified they're not using any particular method so my comment is null anyway.
Cheshire - apologies, I'm not familiar with forums where users have to introduce themselves on a personal level before questions are answered (further info on the actual question is understandable, however). The other ones I'm involved with have a separate introductory section if required but mostly it's just quick firing Qs and opinions.
-- Edited by fin6y on Tuesday 9th of May 2017 09:10:06 AM
Hi Faye
its Joanne by the way. Appreciate the apology, it's just that we started doing this intro request business about two years ago as it sort of weeds out the ...well.....weeds. Ie people who shouldn't be on here for one reason or another. Eg obvious ones who are looking for freebies, which we just refuse to give, although we acknowledge such freeloaders will be pouring all over the rest of the site. But at least it allows us to maintain the 'this site is professionals' stance! Other ones are the Canadians. Well no, not just them, I mention them as you responded to a request for help the other day. Quite often they do not mention they are from foreign parts until we have fleshed it out of them. Saves time all round in the long run. (This was also coved off in a site etiquette message out out a while ago)
In addition, there are often extra questions in there that bring out the information needed to answer their question in a specific manner, so that more precise answers can be given to a particular scenario, rather than broad brush answers which cannot always be applied to each scenario and which can cause confusion. Besides its very common with such first posts that the question asked is the wrong one.....they don't know what they don't know, so they have no clue how to ask it (if that makes sense!)
Now don't get me wrong, additional information is great and a good source of learning for others (such as Johnny being a sponge and hence his question), so posts generally go on to ramble about other things, but we need to be very mindful of such when answering newbies to keep that confusion down to a minimum.
Hope that helps with the stance taken.
By the way, didn't you have your full first name in the signature bar earlier? Not it just shows as 'f' or have I just imagined that? Can you perhaps add it as I saw John (Leger) struggle with your name on another post?
__________________
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
