VAT Blog
Latest news, thoughts and articles from the world of VAT.
VAT on zero rated products
Q: As a customer I receive VAT invoices from suppliers. I had some leaflets done for my business. I understand leaflets are zero rated but am confused as to how this works in practice. The company who supplied the invoices charged me 20% VAT saying that they are the...
VAT on pub conversion
Q: I am getting stuck on the conversion aspect of an old public house re kitchen/ rooms separate etc.??? I avoided purchase tax with a 1614d. I am getting planning on conversion to a 5 bedroom house. There was no separate flat, just accommodation upstairs from the pub...
VAT recovery on property conversion
Q: Our VAT registered UK private limited company owns a small commercial office building, (which is not opted in to VAT). We have planning permission to convert these premises to 4 residential flats. I have been advised that we cannot reclaim VAT on materials and...
VAT Refund on a Property Conversion
Q: Hi. Hope you can help with my query. My father has recently hap permission approved for the conversion of a commercial building to be converted into a 4 bed residential home. My father met all specifications etc. Recently the council have approaced him and stated...
A summary of those 2012 budget anomoly changes
As we’re now in October, it’s a good time to remind ourselves about the VAT changes introduced in this year’s budget, most of which take effect on 1 October. I thought it was interesting that the Chancellor announced these changes as “amending borderline anomalies”,...
DIY VAT
Q: I am hoping someone will have some advice/tips. I have a new build, vat claim went in on time, but had it refuse on appeal too, my property which is the new build is my home, and I have out buildings that have planning for holiday lets, the only rebuild has been my...
Should I register for VAT?! (International Services Confusion)
Q: Hi. I'm a new member here, had to wait to be approved - thanks for that... this place is really useful 🙂 (Where's the donate button?!) I'm CEO of a Panama company. All income comes through my limited company. As of yet, my income wasn't large enough to be...
VAT ON CANCELLED GOODS / SERVICES
Q: I have received an invoice today for a meal for a large group of employees. The meal was booked, however cancelled early morning with the hotel. The bill received includes a VAT charge. As this was a cancelled service, should I be paying a VAT charge? A: Hi It...
Channel Islands query
Q: I work for a UK registered independent clothing retailer. We are owned by a Jersey resident. He wants to use an entirely separate Jersey based company's website to sell our stock online. This will work by customers (mainly UK residents) buying from the Jersey...
disaggregation rules
Q: Hi Marie I'm sure you have come across this position many times. Although I have seen situations in the past where it is obvious that there is an artifical separation, I wonder if the follwing would be classed as such: Wife has been a sole trader for the past year...
The age old question: Should I be registered for VAT?
Over recent months, I've had more than normal questions from owners of small businesses about whether they should register for VAT. Some of the emails I receive are from people who are genuinely worried about the effect that registering for VAT will have on them and...
Is the VAT registration limit a major deterrent to business growth?
As an independent VAT consultant, I deal with a wide range of businesses from those whose turnover is in the tens of millions to those whose turnover is in the tens of thousands. And based on that experience, it seems to me that one of the biggest barriers to growth...
Is the VAT registration limit a deterrent to business growth?
As an independent VAT consultant, I deal with a wide range of businesses from those whose turnover is in the tens of millions to those whose turnover is in the tens of thousands. And based on that experience, it seems to me that one of the VAT registration limit is a...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Serviced accommodation, the TOMS and understanding section 7.6
It's certainly seems that serviced accommodation ("SA") is the noisy kid in town at the moment; particularly in connection with the Tour Operators Margin Scheme (TOMS). If you're not familiar with the TOMS, it's a scheme for holiday operators to calculate VAT on...
The VAT book every accountant should own: Inter-company transactions and management services
I've had some fantastic feedback about my book "VAT on inter-company transactions and management services", which is now available on Amazon in paperback. It deals with a range of everyday transactions, from cost sharing to disbursements to management charges, that...
Not another VAT newsletter July edition
Check out this month's newsletter for recent developments