VAT/CT/Annual Accounts for Property company

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
Can anyone tell me is there anything in particular that I need to consider (unusual) when dealing with Annual Accounts / CT completion for a property developer. I believe I am right in thinking that any property changed from commercial to residential (not listed) when sold is zero rated for VAT purposes. Can onyone confirm as we wish to make a claim for VAT on building materials etc.

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:VAT/CT/Annual Accounts for Property company

    Hello
    I do the books (but not the accounts) for a property developer but i'm not sure whether the property you refer to will be zero rated. most of the properties my client does are new-builds which are zero-rated but when they do renovations they are standard rated.

    What I do know though is that when I prepare the VAT returns I have to send a copy to the VAT department in Liverpool along with copies of the main supplier statements and any large one-off invoices to enable them to issue the refunds. This system was already set-up when I took over so I don't know how you go about setting it up, but I've got the name of a lady in liverpool whom I send the copies to once a quarter - it might be an idea to phone your local VAT office and ask what you need to do about getting a contact name.

    Hope this helps (a little!)

    Jodie
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:VAT/CT/Annual Accounts for Property company

    Thanks very much Jodie, I have read through the 708 notice but it is still very confusing, I thought as it was commercial to residential the sales would be zero rated. I will contact the VAT people, try to find someone who can take the time to explain in detail. The last chap I spoke to was obviously in a rush to go somewhere, one syallable answers, so did not clear much up really. :D
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:VAT/CT/Annual Accounts for Property company

    good luck in finding a helpful one & make sure you keep a note of the call reference when/if you do!
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:VAT/CT/Annual Accounts for Property company

    If I were you don't bother with HMRC advice line at all. I would use the Croners service. Their details can be found in the members general forum on a thread entitled HMRC Advice Line Beware! They will give you definitive and clearer advice than HMRC.

    Regards
    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:VAT/CT/Annual Accounts for Property company

    Thanks Steve, I have not had time to check out all the member services on AAT MIP site, do I understand correctly that we can make use of the Croner Helpline FOC providing we give the scheme ref number and our membership number?
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:VAT/CT/Annual Accounts for Property company

    I use the Croner advice service rather than HMRC. They are far more helpful and offer clearer advice than HMRC.

    Yes they will ask for the scheme reference and your membership number. Also if someone is not available they will call you back as soon as they can.

    Regards
    Michelle
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:VAT/CT/Annual Accounts for Property company

    Hi, yes thanks all for the advice re Croners, can I just confirm with anyone out there,

    1. Commercial changed to residential and sold freehold is zero rated sale

    2 Commercial sold as commercial with no renovations is an exempt sale

    3. Calculation is then required for Input tax on zero rated sales plus de minimus calculation on residual input tax for recovery.

    Could VAT get any more complicated. Any assistance with this much appreciated

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