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New queries, issue 4595

18 April 2017
Issue: 4595 / Categories: Forum & Feedback

Walkies; Swedish solution; Living costs; PAYE permutations

Walkies

Advice is required on the VAT liability for walking tours.

My client trades through a UK limited company and organises walking tours around London. This usually involves stopping at restaurants and bars for food and drink. The walkers are all private individuals and are therefore unable to recover input tax. My client is the 100% shareholder of the company but he is not involved in the day-to-day UK operations and he lives in America. The company is VAT-registered from my office.

The client has suggested that instead of the above arrangement he forms a US limited company which will be registered at his home address and the tours will be administered through it. His thinking is that he will not need to worry about VAT because the company will be based outside the UK.

I have given this some thought but have doubts...

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