My partner and her sister run a clinic, they deal with podiatry /chiropody only, no fancy nail painting services. They have been doing this for around 10 years.
They rent the building and pay the usual bills.
They are slowing down their clients because they are coming upto the £85k VAT threshold.
On the .GOV website it says that they could be exempt based on the criteria.
Their services generate around if they continued a normal year around £95k of labour
The sales of otherpedics would only amount to around £3k and supplies around £5k per year.
Because the gross sales would be over the threshold would they need to register for VAT or would the service/labour side be exempt only leaving the VAT able items below the treshold so not claiming for them? so not needing to register?
Were wondering if you need to register because the gross is above and then declare the labour is exempt, or do you run the books not registered at all and dont inform the VAT man and advise the book keeper that the services are exempt?
This is not a mistake they can afford to do.... Although they will be either paying VAT or tax on the profit anyway.
Their book keeper is unable to advise just pointing them to the GOV website and one sister has contact HMRC to be told 'yeah i think you qualify' but not asking figures, business details or unable to advise in writing at all.
Summary.... above 85K in gross sales but around £75k of exempt services, do you register or not? can they carry on? is their a upper limit of exempt?
Taxagent said
Tue Jan 17 10:26 2023
They should be asking their tax advisor, ie their Accountant.
psprigs said
Tue Jan 17 10:46 2023
Hi, they did and she said look on the GOV website and has no advice at all.
Taxagent said
Tue Jan 17 12:52 2023
You said bookkeeper not accountant!! Not the same thing. Some bookkeepers cannot advise on vat. If you meant Accountant then I suggest they get a new one who knows what they are doing.
https://www.icaew.com/about-icaew/find-a-chartered-accountant
Or
https://www.accaglobal.com/an/en/member/find-an-accountant.html?isocountry=GB
Exempt is not the same as out of scope for VAT. Expensive mistake if they get it wrong.
My partner and her sister run a clinic, they deal with podiatry /chiropody only, no fancy nail painting services. They have been doing this for around 10 years.
They rent the building and pay the usual bills.
They are slowing down their clients because they are coming upto the £85k VAT threshold.
On the .GOV website it says that they could be exempt based on the criteria.
Their services generate around if they continued a normal year around £95k of labour
The sales of otherpedics would only amount to around £3k and supplies around £5k per year.
Because the gross sales would be over the threshold would they need to register for VAT or would the service/labour side be exempt only leaving the VAT able items below the treshold so not claiming for them? so not needing to register?
Were wondering if you need to register because the gross is above and then declare the labour is exempt, or do you run the books not registered at all and dont inform the VAT man and advise the book keeper that the services are exempt?
This is not a mistake they can afford to do.... Although they will be either paying VAT or tax on the profit anyway.
Their book keeper is unable to advise just pointing them to the GOV website and one sister has contact HMRC to be told 'yeah i think you qualify' but not asking figures, business details or unable to advise in writing at all.
Summary.... above 85K in gross sales but around £75k of exempt services, do you register or not? can they carry on? is their a upper limit of exempt?
Hi, they did and she said look on the GOV website and has no advice at all.