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Our practice has just taken on a new limited company client that owns 80 estate agent branches across the Midlands. The branches have VAT exempt income from selling mortgage and insurance products, and taxable income from the commission they earn selling houses. They are partly exempt as far as VAT is concerned and use the standard method of accounting for VAT, reclaiming about 40% of the VAT on their general overheads; i.e. non-attributable input tax.
In each of the last two years, the company has spent
Our practice has just taken on a new limited company client that owns 80 estate agent branches across the Midlands. The branches have VAT exempt income from selling mortgage and insurance products and taxable income from the commission they earn selling houses. They are partly exempt as far as VAT is concerned and use the standard method of accounting for VAT reclaiming about 40% of the VAT on their general overheads; i.e. non-attributable input tax.
In each of the last two years the company has spent
£1 million plus VAT on capital expenditure mainly fixtures and fittings in the various shops — to create an upmarket image for the business. In effect all of this expenditure is non-attributable as far as VAT is concerned so about 40% has been reclaimed — a total of £140 000 out of £350 000.
My concern relates to the...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
