Business: VAT and Tax Help + General Guidance

themistry

themistry

themistry

Associate
Joined
15 Jun 2006
Posts
575
Hi all,

right could someone with a business head clarify a few things for me. Just a scenario to help me explain.

A business earns £200k revenue in a year, £150k goes into paying employee salaries. This includes both the PAYE and NI contribtions.

From the remaining £50k, the business needs to pay out employers national insurance and corporation tax (19%).

Ok, now, where do tax writeoffs and VAT relief come into the equation? If something can be "written off", what does this mean? Further, how does the process of claiming VAT back work? Confused by it in general.

Any help/links/advice really appreciated.

TM
 
Not got much experience with compensation tax / NI

The process of claiming VAT back is painful (for us anyway) send in all the invoices etc. that you have been charged VAT on and then hope they pay it back.

I work for a company of just 3 people and we are currently unable to pay council tax/rent/suppliers etc. etc. because Customs and Excise owe us £150,000 , half of which they are refusing to pay back (going back 6 months) and the other half of which is already 2 months overdue :mad:
 
Things can be written off - car payments, machinery, rent, bills, stock.

Reliefs comes in various forms, there is also indexation allowance, its all a bit complicated and i am glad i've done with that part of business law now !
 
Raymond Lin said:
Things can be written off - car payments, machinery, rent, bills, stock.
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Thanks, however, I wanted to know exactly what "writing off" entailed not what can be written off. What does it mean, what is "written off", where is money saved/recouped etc.

Thanks,
TM
 
OoOverclockaoO said:
Not got much experience with compensation tax / NI

The process of claiming VAT back is painful (for us anyway) send in all the invoices etc. that you have been charged VAT on and then hope they pay it back.

I work for a company of just 3 people and we are currently unable to pay council tax/rent/suppliers etc. etc. because Customs and Excise owe us £150,000 , half of which they are refusing to pay back (going back 6 months) and the other half of which is already 2 months overdue :mad:
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If you're submitting negative returns to that extent, I'd imagine they're doing some checking before releasing the money!

To the OP - you need to take the advice of a good accountant on this. What they save you in late payment/return fines, miscalculations and general screwups will more than cover their fees :).
 
It will be shown on the profit and loss & Balance Sheet. You only get taxed on profits, so expenditures are deducted first.
 
Adz said:
To the OP - you need to take the advice of a good accountant on this. What they save you in late payment/return fines, miscalculations and general screwups will more than cover their fees :).
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Thanks, and while I will do this, I still would like to understand what these terms mean, hence my question(s).

Can anyone help?

TM
 
Have you not tried their website. There are loads of official guidenotes on Taxation, relief etc available in PDF. Surely its best to get the info from them and you know your on the right side of the law
 
Loki said:
Have you not tried their website. There are loads of official guidenotes on Taxation, relief etc available in PDF. Surely its best to get the info from them and you know your on the right side of the law
Click to expand...

No offence intended, however is it so bad to ask for some simple advice from people who may be more knowledgeable about a given thing? Isn't that what a forum is for?

I could rummage through 50 huge PDFs and unfold the complexities of uk tax law, but thats not what my question was about. Someone, please help me :(

EDIT: im sorry if that was harsh. However, if someone could answer my questions it would be appreciated.

TM
 
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No offence and I certainly wasn't suggesting it was bad to ask for advice ;)

It's just having dealt with the VAT before they can be a pain in the rear if you get the most minor detail wrong. Personally I would like to get their ruling guidlines or whatever

In terms of claiming VAT back that should go on your green quaterly return along with VAT recieved from sales. One is taken from the other and that gives a figure you owe them or they owe you. Thats a very simple overview as iirc you have to include VAT charged and recieved from EU members and non members seperately

Best of luck though with your question
 
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