Accountants should be.....

[Lounge Lizard]

Well now I have got the accountants attention...help and advice please

For the last 5 years I have run my buildig company (sole trader) turnover >£100k as VAT
and dance (sole trader) turnover <£50k as non VAT
My accountant advised me that cos the two operations were so dissimmilar the building income would only be subject to VAT and dance income was ok if kept under threshold
WRONG
I had a VAT inspection last week and the nice man informed me that VAT is due on all income going back 3 years.

Just as I was putting the acountants head in the mangle he informed me that it is ok 'as dance lessons are teaching' and therefore exempt.
I have since been advised by others this is correct.

There must be organisers ot there with turnover over the VAT threshold, could anyone PM me with advice, I am not confident with accountants advice at the moment and as I have now closed building company I dont want to approach another firm.
peter



peter

[bigdjiver]

Why PM? Would it not help all dance teachers / organisers to know this?

it does sound a bit like help me for free, but don't help the others, doesn't it? [/ ]

[Lounge Lizard]

see what you mean sorry, I was thinking of organisers not wanting to put certain information on a public forum.
may get an example of one person paying VAT another not and associated problems.

please anyone contact me by any means - did not mean offence, thanks for pointing that out
peter:sorry

[Gus]

Originally posted by Lounge Lizard
For the last 5 years I have run my buildig company (sole trader) turnover >£100k as VAT
and dance (sole trader) turnover <£50k as non VAT
My accountant advised me that cos the two operations were so dissimmilar the building income would only be subject to VAT and dance income was ok if kept under threshold
WRONG
I had a VAT inspection last week and the nice man informed me that VAT is due on all income going back 3 years.

Pete ... I'd challenge this original assessment with another Customes Office. I run a VAT registered Consultancy business and Gorgeous Gus as a non-VAT personal income (Sch d4?) biiness. Been assesed for the dance business before ... no question of my VAT registration affecting the dance business as its a totaly different business.

Worth getting another office to comment .... HMC&E arent always the brighest cookies in the buscuit tin

[Andy McGregor]

Originally posted by Gus
Worth getting another office to comment .... HMC&E arent always the brighest cookies in the buscuit tin

Award for bravest accountant goes to Gus, the man who's about to find out he's got a HMC&E inspection in 2 weeks

Andy

p.s. You can offer them buscuits, but I think they need to be plain ones for it to get under the bribery and corruption wire

[bigdjiver]

HMC&E inspectors do vary. A friend had one dig out an invoice. "50 metres garden fencing? And you just have a first floor office?", he thought for a moment, while my friend sat there red-faced, then said Oh, Maggie doesn't need the money."
They are definitely not all like that.

[TheTramp]

Given a sense of humour implant!

Steve

PS. This was a thread where we make "accountants are boring" jokes, isn't it??

[Lounge Lizard]

Hi, I got result on this one
Had a ruling today that if I am a sole trader [any business including consultancy] if my combined income exceeds VAT threshold ALL will be subject to VAT
In my case dance and building business

Teaching dance classes is educational so exempt from VAT
Dances, merchandise etc. are VATable

Cos I don’t run dance nights only teaching/classes plus I spend more than average on music I can claim back all VAT on CD purchases over last three years and - so they owe me LOTS

[fruitcake]

Well done LL, so when you having a party!!!!
Fruitcake

[CJ]

Originally posted by TheTramp
Given a sense of humour implant!

Steve

C'mon Steve!!

They'd reject it!!

[TheTramp]

Originally posted by Ceroc Jock
C'mon Steve!!

They'd reject it!!

Yeah. Maybe we should have just stuck with the one, obvious word!

Shot.

Trampy

[Chicklet]

(I'll probably regret this but what the hell it's Friday) I think the right answer is actually "tickled"

[CJ]

Originally posted by Chicklet
(I'll probably regret this but what the hell it's Friday) I think the right answer is actually "tickled"

with a high velocity dum-dum bullet?