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Claiming expenses

  • 15-08-2007 9:03pm
    #1
    Registered Users Posts: 1,799 ✭✭✭


    Hello

    I am currently putting together the financial elements of a business plan. I am aware that you can claim money back on rent. Is this claimed back as V.A.T if not how is it claimed back and how is it displayed in the financial projections? I there a particular percentage that can be claimed back?

    Any help appreciated.


Comments

  • Registered Users Posts: 78,209 ✭✭✭✭Victor


    It is an expense the same as purchases or wages.


  • Registered Users Posts: 1,799 ✭✭✭Diceicle


    Thanks for the halp.

    So as its the same as purchases I can offset 21% of my rent cost against outgoing VAT payments? Sorry but this is all quite new to me.


  • Closed Accounts Posts: 1,407 ✭✭✭Baby4


    This post has been deleted.


  • Closed Accounts Posts: 362 ✭✭information


    Rent is an expense.

    So you can offset the net amount against your profits when calculating your
    corporation tax.

    You can reclaim the vat portion of your rent, provided you are vat registered
    and the landlord is charging you vat.
    This will be 17.5% of the total bill.

    In a business plan the figures are all net of vat, except for the cashflow.


  • Registered Users Posts: 78,209 ✭✭✭✭Victor


    Rent usually has nothing to do with VAT as most lease aren't VATable (some short leases are).
    This will be 17.5% of the total bill.
    Thats a UK VAT rate.


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  • Closed Accounts Posts: 362 ✭✭information


    Victor wrote:
    Thats a UK VAT rate.

    Total Bill

    Rent 100
    Vat 21
    Total 121

    VAT = 17.5 of 121 = 21


  • Closed Accounts Posts: 2,290 ✭✭✭ircoha


    Total Bill

    Rent 100
    Vat 21
    Total 121

    VAT = 17.5 of 121 = 21

    21/121 = 17.355% not 17.5%

    It is never ever correct to deal with taxes in this way.

    just do the numbers with 1 million and not 100 and explain to the forum how u deal with the 1750

    1m + 21% = 1,21 m * 17.5% = 21,1750


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