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NEIL WARREN considers practical solutions to help Santa Claus with his new business activity
KEY POINTS
- Rules for VAT registration.
- Place of supply for services sold overseas.
- Splitting the business.
- HMRC can direct that two entities are one.
- Change due next August.
Santa Claus has a problem and it involves the nation’s favourite tax VAT. His dilemma is that his UK business of selling toys (he can’t give them all away for nothing – times are hard) has generated sales of about £72 000 in the past 12 months (below the UK VAT registration threshold).
He now has the chance to earn some more money from hiring out his reindeer. The healthy fees from this new activity will mainly come from wealthy parents who want to give little Johnny or Janet a nice ride on one of Santa’s favourite animals.
Santa expects to earn...
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