VAT Blog
Latest news, thoughts and articles from the world of VAT.
Not another VAT newsletter; September 2020
Hi there Lots of everyday VAT issues this month. Stamp duty and VAT: Revenue & Customs Brief 20/11 https://tinyurl.com/y32bdmzb contains guidance for landlords when the terms for leases with existing clients are varied. Very helpful guidance at this time when...
What do you do when HMRC gets it wrong?
I'm sure that most of us have received a decision from HMRC about tax that we feel is wrong. You may think that a similar business is paying less VAT, or you may disagree with HMRC’s interpretation of the rules; or in some cases you feel that they have just given you...
VAT and the reduced rate for residential renovations
The most common query I receive about VAT and residential renovations is if/how you, as the property owner, get the 5% reduction for goods and materials. Unfortunately, you can't. This is because the 5% ONLY applies to goods and materials that are supplied and...
Who really benefits if the government reduces the VAT rate?
It's good that the shops are beginning to open and we're getting some sense of "normality" back into our lives. To say that it will be a long road back is an understatement. And, of course, every commentator seems to have their own ideas about how the government can...
Property developers, VAT and COVID 19: READ THIS
Property developers, VAT and COVID 19 As if there’s not enough to think about at the moment, property developers need to be extra careful with short term lets of new or newly converted domestic properties. Or they could end up with unexpected VAT bills. The property...
Renovations: the difference between the 2 year and the 10 year unoccupied rules….
Spring must be in the air because I'm receiving lots of queries about renovations and conversions. Or maybe it's the effect of Brexit? Either way things seem busier in the property world at the moment. 2 year and the 10 year unoccupied rules One of the issues that...
Brexit, MOSS and the end of an era
So it's happening. The UK is formally due to leave the EU at 11pm this Friday, January 31, 2020. This is a key event for the UK, particularly business owners who have to deal with the practical implications of Brexit. HMRC guidance HMRC has issued a LOT of guidance...
You can ONLY claim VAT that has been correctly charged
I have tried to come up with an interesting and snappy title for this blog. But I just can't think of one. So I decided to go straight for the jugular and state the obvious: you can ONLY claim VAT that has been correctly charged. This means that VAT registered...
Why being self-employed isn’t always the right thing…..
Interesting blog that discusses the downsides of self-employment by a well-known business coach, the stuff they don't tell you about and why it's not always the right thing for everybody: http://tinyurl.com/yxwqvydu
And the difference between VAT exempt and VAT zero-rated is….
The difference between VAT exempt sales and zero-rated sales can make a difference to your profit. If you're a bit confused, check out my (short!) video blog, in our "Back to basics" series, where I explain how it all works: http://tinyurl.com/y2y6sw8o
Renovations and proving the 2 year “empty house” condition
Over the past few months, I've received a number of queries about property renovations and proving the 2 year "empty house" condition. This is the rule that says a dwelling must have been unoccupied for at least 2 years, before contractors can charge the 5% reduced...
Reverse charge for construction services delayed until 2020
See HMRC R&C Brief 2020 which explains why http://tinyurl.com/y4t2gq3l
Yes please, say thank you!
This is a very quick post to make a very simple point. Every week, I answer queries, free of charge, from all sorts of people, both businesses and private individuals. So even if the query is quite complicated, if I can deal with it in an initial telephone call or...
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Not another VAT newsletter; September 2020
Hi there Lots of everyday VAT issues this month. Stamp duty and VAT: Revenue & Customs Brief 20/11 https://tinyurl.com/y32bdmzb contains guidance for landlords when the terms for leases with existing clients are varied. Very helpful guidance at this time when...
What do you do when HMRC gets it wrong?
I'm sure that most of us have received a decision from HMRC about tax that we feel is wrong. You may think that a similar business is paying less VAT, or you may disagree with HMRC’s interpretation of the rules; or in some cases you feel that they have just given you...
VAT and the reduced rate for residential renovations
The most common query I receive about VAT and residential renovations is if/how you, as the property owner, get the 5% reduction for goods and materials. Unfortunately, you can't. This is because the 5% ONLY applies to goods and materials that are supplied and...