Small Woodland Owners' Group

Taxation

Paperwork, grants, legal issues

Postby James M » Fri Oct 01, 2010 11:37 am

How do you guys account for that fact that there is no input/output tax on your forestry related income? I have a friend who's high up in the HMRC and he said if it's not taxable then don't put it on your tax return, mind you he said he's no expert on it. Do you report it ? - the fact it may run at a loss is not the issue, even loss making businesses who make taxable supplies have to submit a return.


My main business is VAT registered, but when I add up the VAT I could claim back by including forestry it's not even worth it to do that, plus it means you need to add VAT to wood sales which is a tax on business, and so bad for business if you sell to private individuals rather than other VAT registered bodies.


For CGT/business Asset roll over purposes I assume it needs to be noted somewhere that it is a business - perhaps that is retrospectively proven by your own records etc?


James M
 
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