VAT

[SLGLGLCL]

My account told be that the square fees I process in Xero should be no vat?  Is this correct as other people are tell my fees should be TAX deductable?

[ReefPassion]

Hi @SLGLGLCL,

I'm assuming you are in the UK. If so, as I understand it the fees charged do not have any VAT on them. I know at least part of the Square is based in Ireland (when you get your monthly invoices that is the address on them), therefore they do not need to charge UK VAT directly. The fees are tax deductible but this relates to your corporation tax due on profits made at the end of the year (if you are a limited business or income tax if you are a sole trader) rather than VAT. 

Hope that helps? 

Claire

reef-passion.co.uk

(also finance manager for a book-keeping firm in my day job).