16 replies to this topic

[Eve]

3 days before completing our land purchase has fallen through.
3+ years of searching, lots of near misses and losses along the way.
Nearly 6 months of planning on the perfect plot, not to mention thousands spent on re-mortgaging the house, solicitors and items for the new place.
We're back to square one, minus money and enthusiasm.
How can it be legal that they could re-advertise the land whilst holding our deposit and selling to us?
How can they put the land on the market, get to the point of exchange and then declare there is a charge on the land and why didn't it come up in the searches I paid my solicitor to carry out?!
Confused, angry, sad and a bit lost...

[boiow]

Don't worry the fog will clear.  You will know what course of action to undertake soon and it will become clear why it all happened like that.   treat it as purely a learning experience.

   We waited years for our land and it waited patiently for us, as we got our mental and emotional act together,  so to speak.  The middle of the night is not the best time to make decisions .   peace.

[shepie]

Hi don't worry as boiow says it will work out
You have the monies in place ready for the next one
Our solicitor didn't charge for the first place when it didn't work out , just for the second one
Fields are like busses
What is the charge and when was it added ? Did they find out what you wanted the land for ?

[Eve]

Thanks for the kind words, sadly my solicitor charged me nearly £1000 for the work already done, and took his payment out of the money he was holding for the land before he returned it to me! I didn't even get a chance to argue about his crappy service!
The vendors have no idea what we wanted the land for, the charge was always on the land, it just wasn't declared and my solicitor didn't find out about it. Before they pulled out they were trying to remove it... The vendor is selling a house with land and the additional land we were buying, they had borrowed against the whole lot and had to get the house valued to make sure they had enough equity in that to be able to sell the additional land, I don't know what the outcome of that was as they lost the buyer for the house and found another who wanted the whole lot, hence the reason we got the boot.
Xx

[adrian007]

This is importnant : Change Solicitor - the solicitor has assumed you won't be back. Prove him right.

And use a conveyancing solicitor, or legal executive, they understand buying land isn't a contentious issue (a major cause of crappy service), so make it go faster, and they'd have not charged you so much for an aborted purchase on the basis there would be another purchase soon.

Also, there is absolutely no legal reason for paying a deposit until exchange of contracts.

The problem was always going to arise, maybeit could have come up sooner, and its sounds like something that could happen as a 'mistake' rather than anything malicious. My reaction when I read your story was that you just had a bit of bad luck.

Keep your head up, the plot you get will be better, it always is!

[shepie]

Eve
Have you opened a business account or registered for VAT
If you have you could put that £1000 through the business and not only could you get the vat back but the whole lot could go against tax , when you get the next bill for your new field you can do the same , that should save £500

Anyone starting out needs to be vat registered you can save thousands of £

If you would like some inspiration to help keep you motivated look at
Axe Head Farm :-)

[adrian007]

Have a look at our facebook page :-) Got the hoops for the polytunnel up!

Can't attache the photo from here!

(thanks Shepie :-) )

[Greenbeast]

ditto!

 

Most of us should be VAT registered. well worth it

[adrian007]

greenbeasts facebook page and blog are inspiring too :-)

[Greenbeast]

Thanks, my good lady is the primary author

 

http://www.charleyan...srealfood.co.uk

[shepie]

Hi Adrian I did see the hoops up it looks great , I like the width , now I have another want on my list

[adrian007]

20ft width, and you can stand up right to the side.

Really wish now I'd got vented sides, the plot is much more level than I thought... you live and learn. I had a choice of (pretty much free)vented sides or a 6 x 8 polytunnel.

Went for the second tunnel, to put inside the 1st as a germination room.

[Sunnysouthdevon]

Can you open a business account and register for vat even if I don't own any land/ business yet?

[Eve]

Thank you all so much for your helpful replies, I love looking at your blogs and pages...
We did go into the bank and discuss opening a business account, but decided to put it on hold to make the most out of the introductory rate free period.
I haven't looked into being vat registered, but certainly will now! Although (brace yourselves for a stupid question😁) When trying to look as profitable as possible for the planning officials would it make a difference if I claimed vat back, and do you declare all expenditure?... For example I've just bought 3 sheds which we plan to adapt to coops or pig (I want to say arcs, but obviously they will be shed shaped! 😉) from our 'business budget' these were 2nd hand and very cheap. Although I understand this would be a part of our start up costs, it seems to me that the less I declare as start up costs the quicker it would appear I was in profit (or at least not quite so much loss!) xx
Ps. I'm not quite so heartbroken anymore... Watch this space! 😃

[Greenbeast]

The flip side, if you show the council you are putting investment in it looks like you are serious.

VAT registering will obviously increase your overall margin, it's a no brainer and not too difficult.

[adrian007]

There are two phases to your business.

 

Now - your expenditure is an investment into your business showing you are serious and putting your money where your mouth is. It's capital expenditure, ie, you are investing capital. Declare it all, where you are paying VAT, you'll be able to claim this back and spend it again :-)

 

Later

 

When your business is running, you need to show it is profitable and declare income and expenditure.

 

You will ensure your 'One Off' Capital Expenditure' during this time is shown separately from your ongoing expenditure, so that it is clear your business is standing on it's own two feet. A sack of feed is not 'one off capital expenditure', a polytunnel is.

 

There may be expenditure that is 'personal' rather than 'business' - don't declare this expenditure - you are looking at your business, not your life.

 

There is also the grey area stuff - something you buy as personal, there is VAT, but you use it a bit for the business. And something not VAT able and it is business, but you use it personally. There is a fine line here about what and whether you claim/declare. You know what is right and wrong, you just have to consider your morals and how you want to set the fine line, and consider where the tax man sets the fine line.

 

Hope that makes sense - broadly the further across the fine line you tread, the more like 'fraud' it looks and the less like an apology will sort it out. Your job, as a tax payer, is to go right up to the fine line set by the tax man, but try not to cross it.

 

Hope that helps

[tonydockers]

just got our first vat rebate, 2 quaters £7500.00

 

much needed much appreciated definately worth the accountants fee