November Question and Answer Corner
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Newsletter issue - November 07.
Q. I am about to sell a trailer that has been used by my VAT registered business for a few years. Do I have to add VAT to the price?
A. As your business is VAT registered you must add VAT to anything you sell, whether it's your regular services or assets that been used in the business. This applies whoever you sell the asset to.
Q. I have a joint savings account with my husband that pays about £1,000 in interest each year. We are both higher rate taxpayers, so does it matter which of us includes this interest on our tax return?
A. As a married couple you are deemed to receive an equal share of the interest, so half of the total amount should be included on each of your tax returns. Although the same tax overall would be paid if only one person returned all of the interest, that would not be the correct position. In this case the Taxman could demand tax, interest and penalties from the spouse who did not include their share of the bank interest on their tax return.