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Hi there
I thought I’d start this time by expressing my admiration for the Queen, who is now our longest servicing monarch. She’s a fantastic role model for leaders, whether civic, business, religious or political and it’s amazing to think that she began her reign before the words “value added tax” even entered our lexicon, never mind our tax system. I’m know she will continue to inspire us with her dedication to our country for the rest of her reign.
What’s the REAL cost of appealing a VAT assessment?
One of the most questions I’m most frequently asked is how much it costs to appeal a VAT assessment or ruling.
Usually these queries are about the direct costs of appealing HMRC’s ruling. These would typically include preparing a letter explaining the taxpayer’s reasons for disputing the ruling and asking HMRC to carry out an internal review of their initial decision. Then, if HMRC uphold the original decision, submitting an appeal to the VAT Tribunal and the costs of representing the appellant.
Unfortunately the financial costs are only part of the story. The real costs are the ones you don’t anticipate.
Read more….http://tinyurl.com/o7puzzn
MOSS VAT and appeals to review system for small UK businesses
How are you getting on with MOSS VAT returns? I’ve read a couple of articles about requests to review the system because many small businesses, including those whose turnover is below the UK VAT registration limits, are struggling to deal with various aspects of the basic rules. Apparently one of the most common errors relates to the way prices are shown . Under normal EC rules, retail prices should be VAT inclusive, however many vendors are showing a net amount then adding VAT at the checkout stage once the customer has provided their address, so that the vendor can charges the correct rate for the country concerned.
I always thought that small businesses would struggle with MOSS so it will be interesting to see whether there will be any changes to the MOSS system. Unfortunately any significant changes would have to be agreed at EU level so I can’t see any major changes in the near future.
In the meantime, the September returns will be due next month, so don’t forget to check out my free calculation guide and spreadsheets if you need help working out the VAT liability for different countries http://tinyurl.com/jwsosrg
Sorting out the confusion about the VAT recovery rules
I know that the words “partial exemption” are enough to make most of us grimace – it’s definitely not one of the most sexy subjects in the world! Dealing with VAT recovery and understanding the rules is probably one of the most tedious tasks for business owners making both taxable and exempt sales. The rules are particularly complicated if you’re a property investor, developer or landlord or if you’re doing VAT returns for a property related business.
In addition to the normal partial exemption rules, the two additional procedures of the capital goods scheme and the payback/clawback rules recalculate the amount of VAT you can recover in the years AFTER you incur the expenditure. This means that you may have to repay some VAT to HMRC or you may be able to claim more VAT from HMRC. Either way, you need to understand how these rules work in principle and particularly if you’re planning for future income and expenditure.
See my article explaining when the different rules apply…http://tinyurl.com/o3uqnjk
Ebooks
If you or any of your clients are planning any sort of residential development, don’t forget to checkout my ebook “VATWoman’s Guide to VAT and residential property development: How to save VAT and manage the process”, a comprehensive guide to the subject http://tinyurl.com/n9q8lje
And my Guide to VAT on management charges, intercompany services, cost sharing and much more…. VAT on transactions with associated businesses: introductory offer £27 plus VAT now extended to 31 October http://tinyurl.com/p7gl38h
And finally, those carrier bags….
HMRC has recently issued guidance confirming that the compulsory 5p charge for one use carrier bags, which is introduced in England next month, is liable to VAT at the standard rate of 20% http://tinyurl.com/q6upfcv. Of course those of you in Scotland, Wales and Northern Ireland are probably now used to the idea of paying for carrier bags, but it is definitely the main topic of conversation at supermarket checkouts here in England.
I’ve no problem with paying for a bag in principle, as long as the amount raised by the levy is put to good causes. But according to the checkout staff at my local supermarket, a lot of people ask for carrier bags for their domestic! So I can’t help wondering if the people who will benefit most from the bin bag levy are manufacturers of small household bin bags?? That rubbish has got to go somewhere!
Marie
September 2015
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