UK VAT Registered Operators

[Matt Hutchings]

Hi chaps,

I'm not really sure where to put this...

I have a Scarlet-W on order with the intention of developing into underwater cinematography.

I understand items that are intended for lease/hire are not eligible for the VAT to be reclaimed.

How does this work with you freelance camera ops? Is it 'rent' when you are operating? It seems (or rather I am hoping) there is some interpretation of the HMRC rules.

This is what it states on their website:

"15.7 What if goods are bought to ‘lease, let or hire’

Where capital goods are bought with the intention of generating income from them either directly (for example boats for hire on a boating lake, hire of bouncy castles or marquees) or indirectly (for example company van used for deliveries during week and hired out at weekends), then they are not capital expenditure goods no matter how much they cost."

I am on the Flat Rate Scheme if that makes any difference.

Thanks in advance...

Cheers,
Matt

 

[Simon Dunne]

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[Simon Preston]

Hi chaps,

I'm not really sure where to put this...

I have a Scarlet-W on order with the intention of developing into underwater cinematography.

I understand items that are intended for lease/hire are not eligible for the VAT to be reclaimed.

How does this work with you freelance camera ops? Is it 'rent' when you are operating? It seems (or rather I am hoping) there is some interpretation of the HMRC rules.

This is what it states on their website:

"15.7 What if goods are bought to ‘lease, let or hire’

Where capital goods are bought with the intention of generating income from them either directly (for example boats for hire on a boating lake, hire of bouncy castles or marquees) or indirectly (for example company van used for deliveries during week and hired out at weekends), then they are not capital expenditure goods no matter how much they cost."

I am on the Flat Rate Scheme if that makes any difference.

Thanks in advance...

Cheers,
Matt

Hello Matt,

First off as you are VAT registered, best to check with your accountant.

From what I understood when I looked into it for a limited company, the capital goods expenditure category was related to being flat rate registered. (and the £2000 minimum spend)

Probably doesnt apply when normally VAT registered but check with an accountant !
If your not a limited company the rules maybe different.

I imagine the majority of broadcast kit purchased is for hire in one way or another.