One for Eric et al- VAt on solicitors costs

One for Eric et al- VAt on solicitors costs

Author
Discussion

pugwash4x4

Original Poster:

7,539 posts

222 months

Wednesday 5th September 2007
quotequote all
Why is it that (apart from it being illegal) a solicitor can charge VAT but a business cannot reclaim this VAT?

by what warped logic is it a solicitors fees for selling my business now wholly and necessarily an essential part of my business?

Eric Mc

122,153 posts

266 months

Wednesday 5th September 2007
quotequote all
VAT is normally recoverable on ALL costs which relate to your business - including capital costs. Why do you think you cannot recover this VAT?
Do you know what section of the VAT regulations blocks VAT recovery on the sale of a business?

blindswelledrat

25,257 posts

233 months

Wednesday 5th September 2007
quotequote all
Presumably you are selling the business as an individual, not actually the business selling itself hence the bills should be to yourself who is not VAT registered?
Does that work?

Eric Mc

122,153 posts

266 months

Wednesday 5th September 2007
quotequote all
That sounds like a plausible explanation.