Stuart Jones's dashboard

Stuart Jones replied on November 10, 2009 10:42 to the question "Balance sheet doesn't balance, Trial Balance OK." in FreeAgent Central:

stuart at 3ca (dot) co (dot) uk

Stuart Jones replied on November 10, 2009 10:22 to the question "Balance sheet doesn't balance, Trial Balance OK." in FreeAgent Central:

Opening balances are a nightmare! I would ask your accountant or, if you want, I'll have a quick look at it for you.

Stuart Jones started following the question "Can I set my start date as April 2007?" in FreeAgent Central.

Stuart Jones replied on October 19, 2009 11:47 to the question "can you add categories for bills/expenses?" in FreeAgent Central:

Rather embarrassingly I had forgotten Materials is a separate heading in Cost of Sales. Sorry to confuse everyone. I use too many charts of accounts!

Stuart Jones replied on October 18, 2009 20:03 to the question "can you add categories for bills/expenses?" in FreeAgent Central:

Having a "materials" heading would open up FreeAgent to a great deal more businesses.

Stuart Jones replied on October 18, 2009 19:59 to the question "What do I categorise this tax as?" in FreeAgent Central:

No Isabel, just enter the net amount. FreeAgent sorts out the tax position.

Stuart Jones replied on October 12, 2009 13:06 to the question "Incorporation fee - VAT problem" in FreeAgent Central:

I needed a five minute break from the tax problem I' was working on and thought I would check if the VAT was deductible or not as I've always thought it was. HMRC have confirmed it is. I'm not certain if the £100 was a notional amount or the actual amount.

If you do want the VAT back need a document to prove it is reclaimable let me know and I'll send you a copy

Stuart Jones replied on October 12, 2009 12:52 to the question "Flat Rate Scheme and £2000 capital purchase - inc. or ex. delivery costs?" in FreeAgent Central:

VAT Notice 733 http://customs.hmrc.gov.uk/channelsPo... has the following examples:

What counts as a single purchase of capital goods?

The normal VAT rules are used to determine whether any particular supply is one, or more than one, purchase and whether supplies are of goods or services.

Examples of a single purchase are:

* A computer package (computer, printer, camera, scanner, speakers etc.) bought as one package is one purchase of capital expenditure goods. If the package costs £2,000 or more (incl. VAT) then input tax can be claimed.
* Items of kitchen equipment (a pizza oven, a fridge and a dishwasher) bought for a restaurant. If all the items are from one supplier at one time, then they count as one purchase of capital expenditure goods. If they are from three different suppliers, or at three different times then they will be three purchases and each must be £2,000 or more (inc VAT) to qualify for a reclaim of VAT.

My advice would be to add another item to the package or why not ask the supplier to charge you >£2000. They'll be happy and you will be as well!

Stuart Jones replied on October 12, 2009 08:10 to the question "Incorporation fee - VAT problem" in FreeAgent Central:

Thanks Emily - I'll leave it up to you now.

Stuart Jones replied on October 11, 2009 20:57 to the question "Flat Rate Scheme and £2000 capital purchase - inc. or ex. delivery costs?" in FreeAgent Central:

1) If you want to be certain one way or the other I suggest you phone the VAT National Advice Helpline and ask them what the position is (ask for a reference number and keep a note of it).

2) If you don't want to do it yourself ask your accountant.

3) If you don't want to do it yourself and don't have an accountant ask me nicely and I'll do it!

4) But bear this in mind - from HMRC website http://www.hmrc.gov.uk/vat/start/sche...

These are the rules for claiming back VAT when you buy capital assets:

* It must be a single purchase of capital goods with a VAT-inclusive price of £2,000 or more. That doesn't mean you are restricted to claiming back the VAT on a single item - for example, you could buy a pizza oven, fridge and dishwasher, as long as you buy them at the same time from the same supplier and the price is more than £2,000 including VAT.

Stuart Jones replied on October 08, 2009 19:12 to the question "Rounding errors in tax calculations?" in FreeAgent Central:

Check with your accountant but in my opinion the difference isn't worth worrying about.

Stuart Jones replied on October 08, 2009 17:33 to the question "Incorporation fee - VAT problem" in FreeAgent Central:

I would just add it using 0% VAT from the drop down menu.

Stuart Jones replied on October 08, 2009 15:24 to the question "Incorporation fee - VAT problem" in FreeAgent Central:

1. Leave it with me till this evening and I'll have a look at it.
2. This is me being pedantic - why has the invoice increased from £100 to £115?

Stuart Jones replied on October 08, 2009 07:38 to the question "Incorporation fee - VAT problem" in FreeAgent Central:

I think some of the confusion is caused because your accountant owes you the VAT which was paid on the original invoice.

Original invoice £100 + VAT £15 Total £115
New invoice £100

You are owed £15

The original invoice is cancelled by the credit note but it will look as if the new invoice has been overpaid by £15. The refund will cancel the overpayment.

Stuart Jones replied on September 18, 2009 05:21 to the question "Car Parking A Benefit In Kind?" in FreeAgent Central:

This may help http://www.hmrc.gov.uk/paye/exb/a-z/c...

Stuart Jones replied on September 17, 2009 07:37 to the discussion "Why is VAT added when I rebill zero-rated expenses?" in FreeAgent Central:

This was quick wasn't it!

Thank you for your email dated 17 August 2009, regarding the VAT treatment of mileage costs.

You have asked if VAT must be added to any mileage costs reclaimed from a client when it is itemised separately on the invoice.

Firstly, I would point out that the sub-paragraph you refer to in The VAT Guide, 25.1.3, gives examples of supplies that cannot be treated as disbursements, and concludes each example with a confirmation that VAT is due on the full value of the supply.

However, in respect of the recovery of costs from a client, these would always be taxable unless they were third party payments made by you, and therefore treated as disbursements. Mileage costs are something that you will have incurred and which you wish to recover. They are therefore always taxable as they are not a service received by your client.

Stuart Jones replied on September 16, 2009 13:26 to the discussion "Why is VAT added when I rebill zero-rated expenses?" in FreeAgent Central:

Despite my e-mail being sent on 17 August 2009 ( 30 days ago) I have still not received a reply from HMRC. Hopefully my reminder will prompt a full reply in considerably less than 15 days.

Stuart Jones replied on September 12, 2009 20:30 to the question "Do I need to put in my tax code?" in FreeAgent Central:

Adam, now you're self employed you're not taxed under PAYE so you don't have a tax code.

You still have your personal allowances though and FreeAgent works out your tax having taken into account your allowances.

Stuart Jones replied on September 10, 2009 18:42 to the question "Reclaiming VAT before registration (FRS)" in FreeAgent Central:

Very impressed Ed. Have just taken on new client and their previous accountant didn't claim enough VAT back. Technology wins.

Stuart Jones replied on September 08, 2009 05:46 to the problem "VAT payment due dates" in FreeAgent Central:

This is why http://getsatisfaction.com/freeagentc...