HI , Can anyone please give me some advice.
I am an agent, working on a sale or return basis dealing with horses imported from another country, which I then school and produce for sale here in the UK.
I became Vat registered last year when we exceeded the VAT threshold. So now we are registered and paying it on time every quarter but it has crippled the business so much that we are now making a serious loss and about to go under.
My questions are, should the money for the principles that we sell for have been included in the gross profit or should it just have been our commission that put us into VAT registration ?
Also, we are on a margin scheme, on which we pay 20% of our commission to the VAT man, but the problem with this is that is it not profit, when taken into account feeding, vets etc and out possible time to get the animal ready for sale here may take up to three months one of the last horses the last horse that I sold I paid £452 in VAT to the government but made a loss of £700 for the business . I do understand that you only pay VAT on Profit, but there are so many grey areas that no one seems to understand when it comes to horses.
I do apologise if this is hard to understand and appreciate any advice that may be offered.
Many Thanks
I am an agent, working on a sale or return basis dealing with horses imported from another country, which I then school and produce for sale here in the UK.
I became Vat registered last year when we exceeded the VAT threshold. So now we are registered and paying it on time every quarter but it has crippled the business so much that we are now making a serious loss and about to go under.
My questions are, should the money for the principles that we sell for have been included in the gross profit or should it just have been our commission that put us into VAT registration ?
Also, we are on a margin scheme, on which we pay 20% of our commission to the VAT man, but the problem with this is that is it not profit, when taken into account feeding, vets etc and out possible time to get the animal ready for sale here may take up to three months one of the last horses the last horse that I sold I paid £452 in VAT to the government but made a loss of £700 for the business . I do understand that you only pay VAT on Profit, but there are so many grey areas that no one seems to understand when it comes to horses.
I do apologise if this is hard to understand and appreciate any advice that may be offered.
Many Thanks
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