VAT Blog
Latest news, thoughts and articles from the world of VAT.
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 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...
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...
American customer, place of supply-France, do I charge VAT?
Q: 1)If an American Company sub contrats to a UK company and the project site is in france, should the UK company (who is doing work in France but invoicing the American Company) charge VAT on the invoice to the American Company? 2)Could the UK company put the French...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
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
Company directors and VAT penalties
Did you know that company directors can be held personally liable for VAT penalties? If a company has made a deliberate error on a tax return (either a ‘deliberate not concealed’ error, or one that is ‘deliberate and concealed’), HMRC can reallocate up to 100% of the...