Not another VAT newsletter: September 2016.
I hope you’ve all enjoyed what is probably our last blast of summer this week! In the meantime, there are plenty of topical VAT issues to think about.
The pros and cons of VAT group registrations
HMRC recently issued Business Brief 11/2016: http://tinyurl.com/jpljd7b which deals with some complex issues concerning transfers of businesses as a going concern, especially if any of the parties involved are partly exempt. However VAT group registrations can be very useful arrangements for corporate groups of all sizes, especially those with regular intra-group transactions, so I thought it was a good time to remind ourselves of the pros and cons. Read more http://tinyurl.com/jzyqc4rI
Flat Rate Scheme, insurance and car repairs
Can you claim VAT on vehicle accident repairs can claimed if you use the Flat Rate Scheme? Unfortunately, NO, even if the vehicle itself is “capital expenditure goods” – see VAT Notice 733: VAT Flat Rate Scheme, s15 http://tinyurl.com/juvhlzl which explains the rules.
It’s a dwelling, Jim, but not as we know it…
A couple of points about VAT and property.
The first one is the meaning of the word “dwelling”. There are at least 3 definitions in the VAT legislation and if your property doesn’t meet the specific criteria for VAT relief, you might have to pay more VAT than you’d anticipated on construction services. See my recent articles on Accounting Web where I’ve discussed this issue in the context of multi-occupancy dwellings http://tinyurl.com/hsjlhqb and multi-building dwellings http://tinyurl.com/jmmhdgu
I’ll be discussing this and other issues relating to self-build property development in my upcoming book “VAT for DIY builders” – I’ll be announcing the publication date in the next few days.
The second issue is revoking the option to tax under the 20 year rule: If you want to sell or lease an opted property but the purchaser/tenant can’t claim VAT, or wants to keep stamp duty land tax costs down, consider whether you’re able to revoke the option under the 20 year rule. See my recent article discussing the pros and cons and how to do it http://tinyurl.com/juhun5f
EU VAT claims: deadline 30 September
Finally, if you or your client wants to submit any VAT claims to other EU countries for VAT on expenditure during 2015, please remember that the deadline is 30th September: see VAT Notice 723A: Refunds of VAT in the European Community http://tinyurl.com/l97gcxd for more information.
Marie
16 September, 2016