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Where Taxpayers and Advisers Meet

Are Set Designer Floats Part of Turnover

CG
Posts:202
Joined:Wed Aug 06, 2008 3:33 pm
Are Set Designer Floats Part of Turnover

Postby CG » Thu Jan 24, 2019 1:43 pm

Hi

Does a set designer who receives floats, for productions to buy props etc, need to include the amount of the float when looking at turnover to see if they have reached the VAT Registration threshold?

Also, do these floats form part of taxable turnover when preparing accounts, with the float then deducted as a direct cost? Or can they be kept out of the accounts, because receipts are submitted and if there is any excess float it is either returned or invoiced for as a fee (at which point the fee would be included in the accounts).

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Are Set Designer Floats Part of Turnover

Postby pawncob » Thu Jan 24, 2019 4:21 pm

They're not floats, they're payments on account, so they form part of your turnover.
With a pinch of salt take what I say, but don't exceed your RDA

CG
Posts:202
Joined:Wed Aug 06, 2008 3:33 pm

Re: Are Set Designer Floats Part of Turnover

Postby CG » Fri Jan 25, 2019 5:06 pm

Hi

Thanks for your reply.

Could they not be considered disbursements and therefore not taxable turnover?

The floats can be up to £8,000 or £9,000 a time and are for the set designer to go to the prop houses etc to buy items for the set. So all items are bought on behalf of the production company.

It would seem to grossly inflate turnover if these amounts had to be included.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Are Set Designer Floats Part of Turnover

Postby pawncob » Fri Jan 25, 2019 6:33 pm

Do you invoice for them?
With a pinch of salt take what I say, but don't exceed your RDA

CG
Posts:202
Joined:Wed Aug 06, 2008 3:33 pm

Re: Are Set Designer Floats Part of Turnover

Postby CG » Fri Jan 25, 2019 8:11 pm

No, no invoice raised.

To give you an example - a large proportion of the £9,000 float was paid to one company to provide walls and floor to the set.

Thanks for your help.

Trevor S
Posts:108
Joined:Tue Jan 01, 2019 12:37 am

Re: Are Set Designer Floats Part of Turnover

Postby Trevor S » Mon Jan 28, 2019 11:17 pm

I think you need to establish whether the goods bought with the "float" at any point belong to the set designer.

If ownership of goods passes straight from the supplier to the set designer's client, then it would imply that the designer is acting as agent, and that part of the "float" wouldn't count towards the turnover limit. Obviously any fee that the designer retained as payment for making the arrangements would be part of their turnover.

However, if there is any point at which the set designer has ownership of the goods, they are both receiving and supplying the goods. The "float" would be payment for that supply of goods, and so need to be included as turnover.

Given the amounts involved, I'd assume there must be written agreements between the set designer and their client. This should make it clear whether the designer has ownership of the goods at any point. Obviously you also need to ensure that the transactions actually taking place are in accordance with the agreement.


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