Business Tax

Business Tax.

HMRC can charge you a penalty (between 15% and 100% of the unpaid amount owed) if your VAT Return is inaccurate.

- The length of the period of ownership. Short time periods between transactions tend to favor trading rather than investment treatment, although it should be emphasized that this is a general rule. Ali could be trade due to the short period of ownership. He buys the cars at a good price, repairs them and then takes them back to auction to sell.

- The frequency of transactions. Where similar transactions occur over the period of time this is likely to point to the existence of trade. If Ali would buy one car and then resale for a profit – this would not be a trade. But he did it for several times, so, it would be held that the frequency of the sales proved a trade and the first sale would be treated as being the beginning of that trade.

  • Economy & Finance Essays
  • Microsoft Word 130 KB
  • 2016 m.
  • English
  • 7 pages (2727 words)
  • University
  • Tomyyte
  • Business Tax
    10 - 4 votes
Business Tax. (April 14, 2016). Reviewed on 10:13, April 11 2021