Opticians/subsidiary

lizzy

Hi I am taking on a new job (I only do the bookkeeping) I already do the bookkeeping for the company which is a rental property business but the owners daughter is starting her own opticians business next month which he wants to be a subsidiary his business (where she will rent the premises from the parent co.)

I wondered if anyone has any experience of both optitcians or subsidairies. I have researched and am aware that there will be a partial exemption involved with the VAT.

I speak to their accountants but not very often & just wondered if anyone had any advice/tips

Would be much appreciated

sdv

Opticians Bookkeeping

lizzy wrote: »

.............. I have researched and am aware that there will be a partial exemption involved with the VAT.

I speak to their accountants but not very often & just wondered if anyone had any advice/tips

You will ned to negotiate with HMRC on what percentage of turnover is acceptable as vat exempt

I know of an optician practice in London with 60:40 exempt split

Recently my accountant friend secured 65:35 exempt split in East Midlands for his client

It would not be a bad idea to speak to your client's accountants to find out what split percentaage have they used for your client.

You could start using 65:35 split but be prepared to accept a lower split if HMRC are not happy with it.

lizzy

Thank you, I am going to talk to the accountants as they are probably already talking to hmrc about this, thanks again