VAT Blog
Latest news, thoughts and articles from the world of VAT.
Whatever happened to saying “thank you”?
Today I'm having a bit of a rant. I want to know whatever happened to saying thank you? I'm often left wondering whether there is some unwritten law of business that you don't have to say thank you to someone who helps you out free of charge. Or am I just too old...
And the MOSS trainwreck thunders along.
So am I the only person who isn't surprized that the MOSS system seems to be a bit of a disaster? Remember that this is the scheme where you're supposed to register for VAT if you make ANY B2C sales of e-services to customers in other EU countries. This time last...
VAT news: Carrier bag edition (Sep 2015)
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...
VAT and Property
Whether you're a commercial developer, house-builder, investor, landlord or tenant, just about every business in the UK has some involvement in property. VAT and property issues are among the most complex and potentially the most costly. And once you've done the deal,...
VAT on renovations
When can you save VAT on renovations? I've had a number of queries about VAT and property renovations recently - i.e. dwellings and certain other residential/charitable use properties. You can save a lot of money if you understand how the VAT rules work, so that you...
I think there’s a bit of scare-mongering about the 5% rate on renovations and conversions……..
I think that there's a bit of scaremongering about the possible withdrawal of the reduced rate from conversions and refurbishments. I've recently seen a few articles about potential changes to the application of the reduced rate of VAT, following HMRC's recent...
So what’s the REAL cost of appealing a VAT decision?
I received an email this week asking one of the most common questions about VAT: "how much does it cost to appeal HMRC's decision?" And it made me think not just about potential consultants/accountants/legal fees, but the other things that you don't consider. So I...
Sorting out the confusion about VAT recovery rules
One of the most tedious tasks for business owners and accountants has got to be dealing with the various VAT recovery rules. And the rules are particularly relevant for you if you're a property investor, developer or landlord. You may never have heard of some of the...
VAT news: single or multiple supply? (Aug 2015)
Hi there, There's a lot happening at vatexchange.co.uk as we're busy updating the site and will be introducing a whole new look within the next few weeks. The new look will be much cleaner, fresher and easier to navigate and I can't wait for the change! Single or...
VAT news July 2015
I can't believe it's already the end of July! I'm sure that many of you will be off on holiday in the next month or two, but, of course, the VAT world doesn't stop. There were only a couple of VAT changes in the recent budget and these only affect a limited number of...
Why the little word “use” is so important for property developers and VAT recovery
You wouldn't think that such a short little word could cause such a lot of confusion. But there are two different situations where the word has significant VAT implications for property developers. • The first concerns how much VAT you can claim on materials and...
MOSS businesses and UK VAT returns
I've had a couple of queries recently from UK businesses registered under the MOSS arrangements about UK VAT returns, so I thought it was a good time to try to explain the rules for MOSS businesses and UK VAT returns. There seems to be a lot of confusion among MOSS...
When the option to tax is disapplied: TOGCs; VAT 1614 and anti-avoidance
I often get queries from people about situations where the option to tax is “disapplied”. Anything involving the option to tax (“OTT”)is a complicated subject, but there are three main situations when it can be “disapplied” so I thought it would help to explain each...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Property developers, VAT and residential conversions
In the past few months, I've had queries from a couple of developers about claiming VAT on costs. In both cases, the developers have converted old residential homes into apartments, selling or intending to sell long leases in the newly converted apartments. They...
What’s the real VAT cost of a property development?
If you want to avoid mistakes and unexpected VAT bills, you need to do the VAT planning for your development as part of the initial financial planning for the project. It might seem obvious that the VAT cost of a development is the difference between the VAT you pay...
Renovations and the confusion about the 5% VAT rate
The most common misunderstanding about VAT and renovations is when you can get the 5% reduced rate. So I thought that I'd try to clear up the confusion. The basic rule is: If you are purchasing goods only, the retailer has to charge 20% VAT. That's it. And no, you...