VAT Blog
Latest news, thoughts and articles from the world of VAT.
Desperately seeking VAT notices on the HMRC website…
It really is about time that HMRC got their website up to scratch and, in particular, get the search facility sorted out. Unless you know the actual name and number of any specific VAT notice, the search facility is a real hit and miss affair. And even if you do know...
February 2011 Newsletter
Welcome to our February newsletter I hope you're all busy and having a productive month. Something has to make up for the miserable weather! The 20% rate might be over a month old, but it still seems to be a huge milestone to me. I've been working in VAT since 1981...
Astra Zeneca and Employee Benefits
Astra Zeneca and Employee Benefits: Last year’s ECJ decision in the case of Astra Zeneca UK Limited (“AZUL”) got a lot of people in the VAT world terribly excited. It seemed to me that the decision was correct within the meaning of both EC and UK VAT legislation, but...
The Importance of Asking the Right Question!
The importance of getting the question right A couple of weeks ago, I had a bit of a moan on the blog about HMRC giving incorrect or incomplete advice about VAT issues. Since then, I’ve been thinking a lot about the problems of asking for and receiving advice about...
A lack of reasonable care and failure to disclose?
I get no pleasure from writing blogs about this subject, but here I am again. Yet another situation where somebody has been given incorrect advice from HMRC because the officer didn’t know enough about the subject. This is the third time in the past couple of months...
DIY Housebuilders Claims
The VAT DIY Housebuilders scheme is the scheme which enables private individuals who build their own home to recover VAT on the cost of certain goods. Commercial housebuilders can recover such VAT through their VAT returns and the purpose of the DIY Housebuilders...
How far back can VAT be claimed…..
Q: Hi. I have had an inactive VAT registration for approx 2 years now- nil returns submitted each time. 10 months ago i was made redundant and i inested a littkle in trying to get something of the ground...prob just broken even but i still submitted Nil returns....i...
Last minute VAT rate rise savings & cashflow tips
Well it’s the final run up to Christmas and I imagine that most people won’t be able to do much between now and the new year in preparation for the 20% VAT rate. But here are just a few last minute reminders about things that can help every business deal with the new...
Twelve Important VAT Rate Change Facts
1. The important date is 4 January 2011! 2. The new VAT fraction will be 1/6. 3. Check out the new VAT rates for businesses using the Flat Rate Scheme. 4. Take advantage of the change of rate supply rules for supplies spanning the rate change. 5. Consider pre-payments...
Crossing the VAT Rubicon
28 days and counting! There are now just 28 days and only two full working weeks until the most significant rise in UK VAT history. And only one week if you’re one of those businesses who closes up shop before Christmas Eve. That’s not a lot of working days to make...
VAT Refund on Newbuild Construction
Q: Hi I'm hoping you'll be able to provide me with a bit of advice on re-claiming VAT on materials used in constructing a newbuild property. It's a little bit of a saga but please bear with me. In 1992 my husband and I bought a plot of land with outline planning...
US training & software services company delivering in London UK
Q: Hi, I was in a discussion last night about UK VAT, which I know nothing about, and I was looking for guidance. We are a brand new US registered company and have just closed a deal for a UK university to license our software to use in London. Do we charge them VAT?...
Education services in EU
Q: I provide education services in the UK and I am not VAT registered because my annual income does not go over the threshold. I have been offered a chance to teach in other EU countries. I understand that education services are treated as VATable in the country of...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
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...
Making tax digital for VAT
I recently saw an article reporting that HMRC has not yet prosectured any businesses who trade on Ebay, Amazon and other online platforms for VAT avoidance. I don't know whether the report is true, but if so, I can only assume that part of the reason is the...
The VAT invoice
Quick blog this week, but about a very important issue that affects anybody submitting a VAT return and the humble document otherwise known as the VAT invoice. We all know that HMRC is constantly looking for ways to increase the VAT revenue. Even if you think you do...