smallbusiness.co.uk: Helping your business think big

Life is so much harder if you’re ambitious

By putting yourself on the line, you’re increasing your chances...
Have your say »

RSS

Is commission charged to our company vatable?

Nov 23 2005

It depends on the type of service supplied in return for the commission. Most commissions such as, for example, an estate agent’s commission are subject to VAT. Certain commissions for financial services are exempt.

In general, financial services are exempt from VAT, but some supplies although connected to financial services, are not exempt. These include debt collection and credit control, equipment leasing, management consultancy and registrar services. VAT charged on these input items would generally be allowable as an offset against your output VAT liability. An example of an exemption from VAT is the charges rendered by your bank for operating your bank account.

Comments

There are currently no comments on this article

Prize Draw

Enter our prize draw!!

You've probably noticed smallbusiness.co.uk has a brand new look. You can personalise the homepage to suit your needs and there's lots of new content including video, blogs and the small business resource centre.

We're interested to know what you think about the new small business site, so we'd like you to take this opportunity to have your say. All entrants will be entered into our free prize draw to win a bottle of champagne provided by our partners at Laithwaites! Enter here

Polls

News

May's high sales called a blip

Slower sales figures from June showed that the increased spending levels in May were a 'start-of-summer blip', according to the British Retail Consortium (BRC).

CBI hails importance of IT in business

A new report from the Confederation of British Industry (CBI) has highlighted that IT has a range of benefits for British businesses.

CBI: Small business may suffer from lack of diversification

Specialisation may cause small businesses to suffer in the event of a recession, the Confederation of British Industry (CBI) is warning.

CBI: Small business may suffer from lack of diversification

Specialisation may cause small businesses to suffer in the event of a recession, the Confederation of British Industry (CBI) is warning.

BCC highlights recession risk for UK firms

The British Chambers of Commerce (BCC) has claimed that the UK is in "serious risk" of a recession in the upcoming months.

CBI: Innovation can help businesses survive crunch

Innovation is essential for service sector small businesses to survive in times of economic delivery, according to the Confederation of British Industry (CBI).

Market research beneficial, says consultant

Asking customers what they want from a business can be 'very beneficial' for entrepreneurs who would like to improve their firm's performance, a consultant claims.

Retail body says clothing sector has best e-commerce potential

Fashion and clothing has the best potential for growth for online businesses, an e-commerce industry body claims.

Europe to cut SME red tape

EU legislators have promised to reduce red tape for small and medium-sized enterprises (SMEs) in member states with the publication of the Small Business Act.

'Curious' rise in retail spending

The chancellor has called the record rises in retail spending experienced during May 'particularly curious' in the light of the credit crunch.

'Instant response' expected from businesses

Businesses are now expected to provide an 'instant response to absolutely everything', a copywriter believes.

Guides & Tips

Naming your price

Setting the right price is crucial, but using it to win business often demands a subtle touch. Three company directors tell SmallBusiness.co.uk how they use pricing in sales negotiations

Redefine your market

If you’ve hit a ceiling in terms of your rate of sales and number of customers, it may be time to find pastures new. Three owner-managers explain how it can be done

Increase your profits fast

Independent retailers are going through a bumpy time at the moment. Fortunately there are proven ways to increase profits which can be implemented quickly and easily. Using these tips can help.

Store

Starting a Business 2007

Starting a Business is the essential guide and resource for anyone thinking of starting their own business, packed with information and tips from the highly experienced team behind SmallBusiness.co.uk

FT Guide to Personal Tax

Formerly the Lloyds TSB Tax Guide, the FT Guide to Personal Tax is now published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and Jonquil Lowe, this unique guide gives step-by-step advice to completing your tax return as well as 100 tax-saving tips.

FT Guide to Business Start Up

Formerly the Lloyds TSB Small Business Guide, the FT Guide to Business Start Up is now published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc, this unique guide has sold over two million copies. It offers practical advice about starting and running your own business.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.