VAT Blog

I’ve received a lot of queries over recent months from people buying pubs, either to convert for their own private use as their main dwelling, or to use for a mixture of business and private purposes.  Many queries are about buying VAT-free properties for conversion....

VAT and salary sacrifices: background In this blog, I'll be explaining the new rules about VAT and salary sacrifices that apply to employers who run a salary sacrifice remuneration scheme.  HMRC has confirmed that from January 2012, there will be a major change in the...

I would like to blog every week, but usually there are just too many other things taking up my time. And a couple of weeks ago, I had a crisis. Not of the ordinary type but the sort of crisis that engenders absolute panic for a non-techie with an internet based...

Recently, I’ve been thinking about HMRC’s role in the management of taxes in the context of VAT overpayments. When HMRC recently announced that they wouldn’t be appealing the ruling in Paymex Limited, I couldn’t get terribly excited because for the businesses...

The HMRC website states the following: “If you can't find the answer to your question on the HMRC website, the quickest and easiest way is to ring the VAT helpline where you can get the most of your VAT questions answered.” So you’d expect that if you ring the...

The Flat Rate Scheme and Bank Interest.  Certain bank interest should not be regarded as turnover for the FRS. This follows a recent decision by the First-Tier Tribunal about the treatment of bank interest. In January, the Tribunal handed down a decision in the case...

I’ve recently added a new section to the website which contains a summary of the main VAT rules relating to charities and links to the HMRC notices which contain more detailed information (see the link on the menu). As you’ll see, it’s a big topic. In fact, the...

VAT, construction and buildings: Anything to do with VAT and property always comes with a very strong health warning. This applies whether we’re talking about charity or non-charity property. In the case of charities, the rules are very detailed. While certain...

VAT Reliefs on Income See VAT leaflet 701/1/04 Charities http://tinyurl.com/5wugmqh for detailed information about the VAT treatment of income received by charities Section One: Zero-rating Sales of donated goods Exports of any goods by charities See VAT leaflet...

Charity: VAT reliefs on expenditure Section One: Zero-rating Charity: VAT reliefs on expenditure.  Zero-rating relief on expenditure falls into two main sections: the first is where the expenditure is on certain types of goods and services, while the second provides...

VAT and Charities: charity doesn't always mean VAT free.  There is a widely held assumption that anything to do with charities is tax and VAT free. Unfortunately the VAT rules are not so generous and charities are required to pay VAT on their business sales and...