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Where Taxpayers and Advisers Meet

Insurance Premium part recharged

Green shed man
Posts:17
Joined:Sun Apr 29, 2012 2:13 pm
Insurance Premium part recharged

Postby Green shed man » Sun Nov 06, 2016 11:30 am

A VAT registered share farmer (A) paid the premium for insuring livestock he owns jointly with the other share farmer (B).
The invoice from the broker to A may have been lost but would presumably show IPT and zero-rate VAT.
A included the IPT inclusive sum in his VAT return (no VAT).
A now wishes to recharge the relevant share of the IPT inclusive sum to B and to VAT zero-rate it.
I wonder if this should be standard-rated in fact.
B is VAT registered as well so it matters little to HMRC but we like to do things right!
Any thoughts? Many thanks.

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: Insurance Premium part recharged

Postby les35 » Wed Nov 09, 2016 5:52 pm

The IPT element of the charge is part of the invoice. But, who is the insured party? Are both farmers covered by the same policy?

Green shed man
Posts:17
Joined:Sun Apr 29, 2012 2:13 pm

Re: Insurance Premium part recharged

Postby Green shed man » Wed Nov 09, 2016 6:21 pm

Thanks and Yes, the insurance was for both of them at the time it was arranged. Ideally people share-farming should get suppliers to give them separate invoices but that does not always happen.


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