VAT receipts

hcass

I started a new business in October so I am still a bit clueless (even after start your own business course)

I am currently filing my first VAT return and need to know if I need VAT receipts for every purchase I am claiming for? I didn't ask for them (except for a few big purchases where they just gave them to me without me asking) as I honestly didn;t know at the time.

Also - I interview a lot in my job and I do it at cafes - can I claim coffee and/or food when I eat at these places while working? It's not every day and I haven't claimed so far but would love to know if I can.

Thank you.

Gloomtastic!

hcass wrote: »

I started a new business in October so I am still a bit clueless (even after start your own business course)

I am currently filing my first VAT return and need to know if I need VAT receipts for every purchase I am claiming for? I didn't ask for them (except for a few big purchases where they just gave them to me without me asking) as I honestly didn;t know at the time.

Also - I interview a lot in my job and I do it at cafes - can I claim coffee and/or food when I eat at these places while working? It's not every day and I haven't claimed so far but would love to know if I can.

Thank you.

Yes, you need receipts or a record, like a detailed bank statement, of every transaction. You might get away with the occasional instance where you've lost a receipt. Put something in writing and file it with your other receipts.

You'll soon get into the habit of collecting receipts, trust me.

Not 100% sure about the coffee ,but I believe you can claim for a coffee/snack on the way to see a client. Just claiming for everyday coffee is not allowable.

Buttercake

Get an accountant! Seriously, if you are vat registered your turnover must be good/potentially good.

There's loads of them out there, mine calls to my office once a month and does everything in a day. An accountant will tell you what you can/can't claim etc, allowances etc etc

hcass

I have an accountant. I do not have a high turnover - I only started business in November and am making very little. I registered for VAT because I was advised at my Start Your Own Business Course to register for VAT from the beginning as it shows you are serious and professional. And it will also save me having to raise my fees considerably when and if I do turnover more tan 37,000.

I was asking about VAT receipts not receipts - as in if I buy some stationary for my business in Eason do I need to get a VAT receipt. OF course I keep all receipts - if you read my question it was in realation to VAT receipts.

Peterdalkey

You can only reclaim VAT on receipts that have the supplier name and VAT number quoted on them, sometimes you need to ask for a VAT receipt.

Gloomtastic!

hcass wrote: »

I have an accountant. I do not have a high turnover - I only started business in November and am making very little. I registered for VAT because I was advised at my Start Your Own Business Course to register for VAT from the beginning as it shows you are serious and professional. And it will also save me having to raise my fees considerably when and if I do turnover more tan 37,000.

I was asking about VAT receipts not receipts - as in if I buy some stationary for my business in Eason do I need to get a VAT receipt. OF course I keep all receipts - if you read my question it was in realation to VAT receipts.

All electronic receipts you get from shops like Easons will list the VAT. If it's a hand written receipt then you may have to ask them to split it out. Note, if you have a petrol car just be aware you can't claim VAT on Petrol, just Diesel. (Why the **** they brought in that little rule I'll never understand!).

When do you think you are going to hit the €37,500 limit?

nompere

I wrote this in the taxation forum recently - and it remains a reasonable view:

"For trivial amounts no Revenue auditor is likely to query a claim for the VAT element on the purchase of something that clearly includes VAT. That's not to say that it is technically correct - it's just reality.

For larger amounts it is generally your job to request a formal VAT receipt from the retailer. If you still have the till receipts you might find they're willing to do this now - it makes no particular difference to them."

MidlandsM

You cannot claim for the tea's/coffee's here, however if you were away on business in the uk or somewhere for instance, you can as its classed a "subsistance".

hcass

Thank you everyone - In answer to questions about hitting VAT threshold - I am hoping that next year I will be over it. My overheads are very low so that helps a great deal.

So claiming teas and coffees - every time I ask someone that question I get a different answer... I'd love to know the truth.

Peterdalkey

I would go with the coffee everytime!

Gloomtastic!

What expenses can I claim?

You can claim for any business expenses which you have incurred in order to earn your profits. These expenses are normally referred to as revenue expenditure.
Revenue expenditure is your day to day running costs and covers such items as:

• Purchase of goods for resale
• Wages, rent, rates, repairs, lighting and heating etc.
• Running costs of vehicles or machinery used in the business
• Accountancy fees
• Interest paid on any monies borrowed to finance business expenses/items
• Lease payments on vehicles or machinery used in the business

If you are registered for VAT the expenses you claim should be exclusive of VAT.
What expenses can’t be claimed?

The general rule is that you cannot claim for any private expenses i.e.

• Any expense, not wholly and exclusively paid for the purposes of the trade or profession
• Any private or domestic expenditure e.g. your own wages, food, clothing (except protective clothing), income tax etc.
• Business entertainment expenditure i.e. the provision of accommodation, food, drink or any other form of hospitality.

It's pretty loose which is why you'll get different interpretations.

Off topic-ish: Anyone watch The Call Centre on BBC3? Great reality show about a Welsh Call Centre owned and run by this maverick super-salesman called Nev. Their Christmas party was called the Annual Conference because a Conference was tax deductible while a Party isn't! :pac:

hcass

What if I was holding a competition on Facebook to promote my business and the prize was a coffee maker - could I deduct that coffee maker? claim it for VAT and as an expense?

What if it was vouchers?

Gloomtastic!

hcass wrote: »

What if I was holding a competition on Facebook to promote my business and the prize was a coffee maker - could I deduct that coffee maker? claim it for VAT and as an expense?

What if it was vouchers?

Genuine marketing expense in my opinion......