First Client

MVT

Firstly can I say how useful this forum has been for me in setting up my own business and obtaining my first client - so thank you.

Well my first client is actually a lady who is doing the book keeping for her friend as his wife use to do the books but has sadly passed away. She wanted some advice and help with his VAT returns - he is a plumber. He is behind with his VAT returns by 4 quarters and she has asked me to prepare the vat returns. This is not a problem but a few questions:

1) Who is my actual client the plumber or his friend?
2) She has put all the sales and purchase invoices in his Simplex VAT book, should I check every purchase invoice to make sure the VAT is reclaimable?
3) There are a number of orange phone bills which are mostly for his private use, what would you do in this instance for VAT purposes?
4) Is there anything else I need to look out for?

Sorry for the questions but as this is my first client I would just like some clarification.

I am actually quite excited but nervous at the same time!

Thanks,

Michelle

Monsoon

congrats!

MVT wrote: »

1) Who is my actual client the plumber or his friend?
2) She has put all the sales and purchase invoices in his Simplex VAT book, should I check every purchase invoice to make sure the VAT is reclaimable?
3) There are a number of orange phone bills which are mostly for his private use, what would you do in this instance for VAT purposes?
4) Is there anything else I need to look out for?

1. The friend. You are subcontracting to them, unless you choose to engage directly with the plumber.
2. If she is a bookkeeper, there is an assumed level of competence. I would check a sample and, assuming they are all correct, leave it at that. If there are errors you may have to do some investigating. If she's not actually formally trained/experienced then you may want to look a little closer and give her feedback if you find anything amiss.
3. Assuming he is a sole trader, claim the business % of the cost and the business % of the VAT. As I understand it, VAT officers are usually fine with this method.
4. How long is a piece of string?! Just use your common sense and if something doesn't 'feel' right then have a closer look.

Good luck!

MVT

Thanks Monsoon I appreciate your advice.

I am not convinced that this lady is competent in book keeping as there are a number of silly mistakes I have spotted.

But all I can do is advise accordingly.

Michelle