Opticians/subsidiary

lizzylizzy Feels At HomeRegistered Posts: 36
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

Comments

  • sdvsdv Experienced Mentor Registered Posts: 585
    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.
  • lizzylizzy Feels At Home Registered Posts: 36
    Thank you, I am going to talk to the accountants as they are probably already talking to hmrc about this, thanks again
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