How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3391
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I help run a private members club which has charitable status. We

Customer Question

I help run a private members club which has charitable status.
We supply alcholic beverages to our members which we buy in by the barrel and pay VAT on and then sell to our members
We want to give away one free beer occasionally for a hour on one day of the week if the member guesses a question correctly otherwise they pay as normal - Our question - is VAT chargable on this as we have alredy paid at source and are not charging for the "free" bevarage?
Also regarding our snooker tables we pay VAT on our power consumption at source via lights and charge our members for the time used on our tables . Our question : Is VAT chargeable again on that usage charge? I will need to get back to you to confirm payment as the decision is made by committee.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
VAT must be taken as a whole over the whole business. The club would receive output taxes on sales and reclaim all input taxes. You cannot 'penny packet' unless you make exempt supplies then there are problems. Now I was the Treasurer of such a club for 13 years and asked HM Customs and Excise as they were then what VAT was due on donations and legacies. I was told they were outside the VAT envelope altogether. The provision of free drinks merely reduces the club's profit margins. The receipt for the club is nil so there is no output tax to collect.
In basic terms everything you sell is subject to VAT and the VAT on everything you buy offsets the VAT bill by the input tax it bears.
The snooker table is easy, the charge to members is a standard rated supply so if the charge is GBP 1-20 a frame the book keeping is Debit Cash/Bank 1-20, Credit VAT 20 and snooker sales a quid.
I do hope I have helped; remember as far as VAT is concerned everything is done in one big pot and accounted for quarterly to HMRC.
Customer: replied 2 years ago.

Hello Keith,

Thank very much you much for your reply.

This is as I thought and I appreciate the comprehensive reply .

This as I am sure you know will go back to our committee and having a definitive answer can put paid to all the endless questions and the going round in circles .

Many thanks

StefanSmile

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance, Stephan.
Please be so kind as to rate me before you leave the Just Answer site.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3391
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.