- Original Poster
- #1
Hi,
Not sure if this has been covered before however. I have a fly angling small stillwater trout fishery business.
I’m aware of most Fisheries being slightly avoidance in what they put through the books however this is something I don’t agree with nor wish to do as I wish to make the business grow to a point where Incan sell it on to retire.
Let me explain why growing the business in this industry is an issue when it comes to VAT. Firstly perhaps reading these court decisions will help what we do and why decisions have already been made through HMRC being appealed against their views however they won.
I can’t post the web links on this thread so look up Google for the legal judgements.
Search
trout fishery to avoid VAT how can we cope
VATLP10200
and
On the hook the overall tax treatment on the activity of fishing
If we purchase to make our waters appeal to anglers to catch lots of fish we need to stock the waters regularly. For example say I was to purchase £85,000 worth of fish (no VAT when purchased as it’s a food item) then sold permits for anglers to fish and took in only £85,000 hence making no money the £85,000 would be standard rate VAT. Therefore I would always run a negative. We in reality need to probably put in around £45,000. So with even just myself and 1 staff (unachievable when we need to open 7 days a week from early til dark, so need time off at some point) with costs of just fuel getting to work, fuel to run generators, and a small wage we would hit the threshold very quickly. The more we take in, the more VAT ‘obviously’, but we cannot pass this onto the customer as we don’t sell them a guaranteed goods/products. So in essence we buy stock without VAT but using it counts towards VAT. How do we grow the business?
The main issue is 99.9% of anglers are sports only anglers so almost no one kills fish or even wants to. If we only charged a minimum fee for the fishing and a separate price per fish killed and taken this taking price would be zero rated. If we did this 99.9% are still not taking so we are none the better off.
It appears I have a business that will always run negative if we get better. How can this promote growing our type of business.
I love the business and can make it hugely profitable regarding income but this will always kill it. Does anyone have any ideas how to legally beat this?
Thanks
Not sure if this has been covered before however. I have a fly angling small stillwater trout fishery business.
I’m aware of most Fisheries being slightly avoidance in what they put through the books however this is something I don’t agree with nor wish to do as I wish to make the business grow to a point where Incan sell it on to retire.
Let me explain why growing the business in this industry is an issue when it comes to VAT. Firstly perhaps reading these court decisions will help what we do and why decisions have already been made through HMRC being appealed against their views however they won.
I can’t post the web links on this thread so look up Google for the legal judgements.
Search
trout fishery to avoid VAT how can we cope
VATLP10200
and
On the hook the overall tax treatment on the activity of fishing
If we purchase to make our waters appeal to anglers to catch lots of fish we need to stock the waters regularly. For example say I was to purchase £85,000 worth of fish (no VAT when purchased as it’s a food item) then sold permits for anglers to fish and took in only £85,000 hence making no money the £85,000 would be standard rate VAT. Therefore I would always run a negative. We in reality need to probably put in around £45,000. So with even just myself and 1 staff (unachievable when we need to open 7 days a week from early til dark, so need time off at some point) with costs of just fuel getting to work, fuel to run generators, and a small wage we would hit the threshold very quickly. The more we take in, the more VAT ‘obviously’, but we cannot pass this onto the customer as we don’t sell them a guaranteed goods/products. So in essence we buy stock without VAT but using it counts towards VAT. How do we grow the business?
The main issue is 99.9% of anglers are sports only anglers so almost no one kills fish or even wants to. If we only charged a minimum fee for the fishing and a separate price per fish killed and taken this taking price would be zero rated. If we did this 99.9% are still not taking so we are none the better off.
It appears I have a business that will always run negative if we get better. How can this promote growing our type of business.
I love the business and can make it hugely profitable regarding income but this will always kill it. Does anyone have any ideas how to legally beat this?
Thanks
