Vat on diversification

[Mow]

Im Just developing a small caravan certified location on the farm,nearly all set up now,have bought everything through the farm and claimed the vat back,i am going to have to charge vat on top of pitch fee per night(£15)which is obviously going to substantially cut the amount raised through the year,what are the pros and cons of making the caravan site a separate business?

 

[Mow]

Perhaps I'll have a word with my accountant then,lol!

 

[GTB]

When we converted two barns to holiday cottages and renovated an old cottage for the same purpose our accountant advised us not to claim back the vat on the work. This meant we didn't have to charge vat on top of the holiday let fees. The extra 20% on top of the normal fee would make our cottages noncompetitive compared to other similar accommodation. The business is kept separate from the farm. I dare say a lot of the expenses could be disguised as farm work

 

[Pennine Ploughing]

Im Just developing a small caravan certified location on the farm,nearly all set up now,have bought everything through the farm and claimed the vat back,i am going to have to charge vat on top of pitch fee per night(£15)which is obviously going to substantially cut the amount raised through the year,what are the pros and cons of making the caravan site a separate business?

you cannot have you cake, and eat it, either dont claim the vat back, and dont charge vat, or claim the vat, and charge vat on the pitch fee,

edit, you claimed the vat, so now you have to charge vat on the pitch