Coventry_cat_group

On a sleepless night my mind is dwelling on VAT.

How much income is generated from VAT? What is the true cost of collection of this with VAT inspectors , policy makers and the hidden costs to businesses having to employ people to manage it. If VAT was abolished, what would the basic income tax rate need to be to compensate? What else would need to be put in place to ensure things were the same for consumers? I am guessing all 0 rate items such as food would need to be subsidized to reduce cost. And no doubt import/export taxes would need to be fiddled with. Anything else?

I am a treasurer for a UK charity and have a small problem! Our accounts need to be submitted the end of January (year end was April 2014) and I am having problems with one of my 'suppliers' getting an invoice. The chap in question is a friend of a friend and spent a year doing some building work and was given money in instalments to buy goods etc. The project has now finished and i have been chasing up the paperwork since July. It was agreed that the invoicing would be done at the end of the build.

I have spoken to the charity commission who say i need to get an invoice but i am concerned that i will not get one. this morning it was promised next week (again!).

We have been left a property this year and I'm not sure how I should account for it in our accounts this year. We maintain simple income/expenditure accounts and run at about £20,000 -£30,000 per year. We always do an independant assessment as we think it good practise. The property has been valued at £250,000. Does this have to be added as income or do I suddenly just add it as an asset. Up to now we have kept no asset register not having an items worth over £100 and thus all classed as non-asset.

An acquaintance died in May. There are 4 executors to the will of which I am one. Apart from a few legacies the house and remaining assets are bequeathed to the charity that I am a trustee of. The charity intends to keep the property for use for the charity and its purposes.

The house needs a lot of updating and renovating and we have been put in touch with a major construction company who have expressed an offer of doing some of that work free as part of their community programme. The only thing is that we have to be able to fit in with their timeline which is in about 3 weeks time, when they have the spare manpower available.

Potentially, this will save the charity several thousands of pounds and therefore I am desperate to take advantage of this offer. The house has already been valued for probate and the grant applied for.

Is there a possiblilty we can take advantage of this?

I run a registered UK charity for rescue/homing cats and we took the plunge to register for VAT this year. (supply of animals Zero-vat rated). I submitted my first retrospective return last month (£11K refund) and have been having one or two dialogues with south wales recently....

Anyway, I have been told I need to proportion my spending between business and non business. As far as I can see ALL my expenditure relates to business - approx 45% food and supplies, 50% vets bills and bits and pieces in admin.

What sorts of things apply to non-business? - I think welfare was mentioned but we don't do anything to cats other than the ones we take in (they cost us enough and there is usually a deficit each year as it is).

Thanks in advance for replies.

There has been a recent ruling allowing a rescue to register for VAT.

VAT is something very confusing to me.

As a rescue with an expenditure of £15 - 25K a year, does this mean we should be able to register for VAT and claim back all VAT expenses in the last 6 years? I have cut and paste some of the document below.

"TC01653: Three Counties Dog Rescue

LNB News 11/01/2012 69 Published Date: 11 January 2012

Jurisdiction: England; Northern Ireland; Scotland; Wales England; Northern Ireland; Scotland; WalesCitation: [2011] UKFTT 817 (TC) Decision Date: 12 December 2011 Court: First-tier Tribunal (Tax) Judges: Lady Mitting Decision: Appeal allowed Representation: Philip Luty; Bernard Haley Catchwords: VAT - Charities - VAT - Charities - Abstract

Zero rating- transfer of ownership of dogs by animal charity in return for a 'donation' - was the donation consideration for the transfer - yes - was the Appellant making a taxable supply - yes - appeal allowed.

where

1. Three Counties Dog Rescue ('TC') was appealing against the decision of the Commissioners dated 20 July 2010 to refuse its application to register for VAT with effect from 1 April 2006 and to refuse repayment of an input tax claim of £61,939.

and

20. We find that the Appellant, in its supply of dogs to new owners, was making zero rated taxable supplies, thus entitling it to register for VAT and to recover its input tax. The appeal is therefore allowed.