import tax from malaysia

lorraine
lorraine Registered Posts: 404 Dedicated contributor 🦉
Hi All,

If my client imports cooking oil from malaysia can this be put through the accounts to reduce his profit i.e. as a business expense, he is self employed and filters oil for pubs and restaurants in the uk.

Also if he has paid VAT on the oil can this be claimed back via his vat return???

All help appreciated!

Comments

  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    Is the cooking oil for his personal use or business use?
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    it is for business use.
  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    Then you can legitimately put it through as a business expense. Pay the import duties/VAT and reclaim the input VAT as usual.
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    Is the VAT UK or Malaysian?
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    hte plot thickens.....the oil suppliers are fraudsters, therefore client has paid but no oil has been received, does anyone know how I should account for this now???. Also I don't think he can claim the vat now, as obviously it was a fraudulent vat no also, so no vat can be claimed now is this also correct
  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    Just put it as an Fradulent purchase of Oil expense ( or a miscellaneous a/c) through the books. This will prompt the accountant to ask questions..................
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    thank you for your reply, but I do the tax return (se) on behalf of the client so will need to know what to do with putting it in the accounts, is it an alllowable business expense that can be used to reduce his tax reliability???
  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    if you were doing a tax return for a market trader, or
    a corner shop or
    a mini supermarket

    AND some it's stock got stolen
    or an employee stole some cash from the till
    or when goods received from supplier were short............................

    How would you treat these in accounts (tax returns) ?

    You must have come across these types of situtons before!
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    ok, I would put it as a miscellaneous expense account, and mark it as fraudulent oil purchase where client has paid the fiunds but not received the goods.

    Thank you for your reply.
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