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Holiday Lets/Sykes

  • Fellow PM.Dip
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  • # 116907

Hi.  I have a client who operates as a VAT registered company.  They get their holiday lets through Skyes and whilst I can clearly see VAT on the commission paid to Skyes I cannot see the VAT on the sales.

 

Has anyone dealt with this before and if so, how?  I have a VAT return due now and would be very grateful for any advice.

 

Many thanks

  • Member
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  • 87 posts
  • # 116908

I have a client who used to do holiday lets through Holiday Cottages Group and we used to get an invoice showing the VAT due to HMRC - might be worth requesting a VAT invoice from Sykes as they may not be sending a full VAT invoice.

  • Fellow PM.Dip
  • Practice Licence
  • 16 posts
  • # 116909

Hi Louise and thanks for your reply.

 

I emailed Sykes twice asking specifically about the VAT on the actual bookings and twice they have come back with info on the VAT they charge on their commission despite me saying in my emails that was not what I was asking them.  So I phoned them and to be honest, the person I spoke to didn't really seem to undertand what I was asking but did try her best to get some answers and was very pleasant.

 

So I phoned HMRC and then found this https://www.gov.uk/guidance/vat-instalments-deposits-credit-sales

 

So, I think the best way to do it is to account for the VAT on the deposit in the period that the deposit is received.  So, say 17/04, £120 is received as a deposit then £100 net and £20 as sales VAT.  Then when the balance is received that is put through in that period with the relevant VAT.  If, in the event there is a cancellation and monies are due back at some point, then an adjustment would need to be made in that VAT quarter to reclaim the VAT

 

Does anyone agree?  Or should it be done differently?  Thanks!!

  • Member
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  • 87 posts
  • # 116910

MarianneM said:

Hi Louise and thanks for your reply.

 

I emailed Sykes twice asking specifically about the VAT on the actual bookings and twice they have come back with info on the VAT they charge on their commission despite me saying in my emails that was not what I was asking them.  So I phoned them and to be honest, the person I spoke to didn't really seem to undertand what I was asking but did try her best to get some answers and was very pleasant.

 

So I phoned HMRC and then found this https://www.gov.uk/guidance/vat-instalments-deposits-credit-sales

 

So, I think the best way to do it is to account for the VAT on the deposit in the period that the deposit is received.  So, say 17/04, £120 is received as a deposit then £100 net and £20 as sales VAT.  Then when the balance is received that is put through in that period with the relevant VAT.  If, in the event there is a cancellation and monies are due back at some point, then an adjustment would need to be made in that VAT quarter to reclaim the VAT

 

Does anyone agree?  Or should it be done differently?  Thanks!!


 Sorry - I misunderstood your question LOL - VAT is due to HMRC when the deposit is received :-) SO yes, you are absolutely right or at least that is how I would do it!

 

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