SIV - Delivery added?

[Huggins 17]

 I have a sinking feeling i've been doing myself out of pocket by not reclaming my VAT correctly for years? ... Can someone please clariy.

Have been standing vehicles in for example ; hammer price (1000)  plus auction fee (150 )  assurance cost (35)  plus delivery INCLUDING the VAT ammount (120) £1305

But suspect I should have accounted as £1185 SIV and added delivery as an expense at 100 and reclaimed the VAT element ? 

Obviously this is only feasible where delvery is shown as plus VAT on the invoice.

Regards Huggins

 

[David Horgan 564]

SIV price on your example is £1,150 

Assured report £35 + VAT  is an expense not siv , VAT on that charge is reclaimable

Delivery is another expense and any delivery vat  is reclaimable eg  £150 +vat 

Margin VAT  is calculated from eg ;  on your example £1,150 , eg sold at £2,495 = £1,345 gross = £224 VAT payable Net profit =£1,121 

[Huggins 17]

Thanks for claiifying David - need to sharpen the pencil from here on in!

[justina3 518]

3 hours ago, Huggins said:

Thanks for claiifying David - need to sharpen the pencil from here on in!

Maybe ask your accountant to do a trial vat quarter exercise, where he compiled your records and compairs the vat schedule if you have been over paying you are allowed to make adjustments on your next return to compensate. 
 

be warned this may well trigger a vat return if your books are in good order this shouldn’t cause a problem we all make mistakes 

 

awaits tv to suggest that is the worst Epps doble advise ever. 

[Huggins 17]

OK thanks Justin , I'll probably just suck it up as more hassle than it's worth,. potentially.

[justina3 518]

21 hours ago, Huggins said:

OK thanks Justin , I'll probably just suck it up as more hassle than it's worth,. potentially.

I still think it’s worth a trail audit or the very least ask your accountant at year end to check for such errors. 
 

i know a construction company for almost over a decade they didn’t claim back vat on labour invoices as they treated them in there system as all cis code when it was spotted he claimed back over £20k with hmrc blessing. 

[Highlinev8 28]

If your delivery agent is vat registered and giving you invoices with a seperate vat element ie Delivery £100 Plus Vat @20% = £120 total. Then you should be claiming the vat back.

[trade vet 701]

On 8/6/2020 at 9:17 PM, justina3 said:

Maybe ask your accountant to do a trial vat quarter exercise, where he compiled your records and compairs the vat schedule if you have been over paying you are allowed to make adjustments on your next return to compensate. 
 

be warned this may well trigger a vat return if your books are in good order this shouldn’t cause a problem we all make mistakes 

 

awaits tv to suggest that is the worst Epps doble advise ever. 

Epps doble advise ?

[justina3 518]

1 hour ago, trade vet said:

Epps doble advise ?

bloody phone, worst possible advise ever it should have said.

[trade vet 701]

39 minutes ago, justina3 said:

bloody phone, worst possible advise ever it should have said.

It’s self assessment,if you find you have mistakenly under or overpaid VAT you have to notify them.Since buying VAT qualifying stock became the norm they must be used to giving refunds now.However I have lost count of the number of VAT inspections we have had yet not once has an inspector spotted any over payment.So around the millennium when I discovered that the MOT station we used for years had been billing us for oil and filter changes and MOT tests plus VAT,we tried to reclaim the VAT overpayment.There was thousands to claim back and we were passed around various VAT offices around the U.K. and after 3 years I gave up.

I am sure Huggins will have better luck.

[justina3 518]

Up to four years I would submit a form 652 no need to ring anyone then if the number is large enough they will soon ring you.