Re: Separating business for VAT
Posted: Mon 27 Aug, 2018 12:17 pm
It all depends on the agreement (consignment contract) that you have with your artist. Is the 40-60 split before or after the VAT is paid?
It doesnt matter really. If you sell the item for £100 and keep £40 that is your income. The £60 is rebated back to the customer, who, if VAT registered pays VAT on his £60. If he is not VAT registered then he keeps the lot.
Thats the one bit I may differ from Prospero on. I would only put the net income yo me through the books, but I would have an invoice that details how much was taken and how much was rebated,