VAT Blog
Latest news, thoughts and articles from the world of VAT.
VAT on holiday lets?
Q: I have a property which I have owned for about 10 years, initially it was used as an office and I had an option to tax on the property. I sold the business that was run from the office 2 years ago and converted the property to residential use. I have been using...
VAT on used cars
Q: Hi I'm new to this forum. Any advice would be gratefully received. I am a private individual who recently bought, via a salvage auction website, a 7 year old 65000 km left hand drive Spanish registered car from South Yorkshire Police that they had previously seized...
VAT on lease of commercial property
Q: I brought a empty shop which was vat opted. i paid vat on the purchased price , the intention was to run a business from the shop so registered for vat and claimed the vat back from the purchase price. The business never got off the ground and have now decided to...
What’s more important – SEO campaigns or website content?
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...
VAT for two related companies to be combined ?
Q: My husband are both active director/shareholders of a small online retail limited company and are VAT registered. My husband has an idea for a new business, selling a completely different product . In the new Limited Company he would be the sole active director but...
Vat treatment for an EU Country that pays through it’s UK company
Q: Hi I supply marketing services to companies both in the UK and abroad. I am not sure which income I need to take into account for Vat Registration purposes. My turnover is nearing the £73,000 mark but should I include sales to non EU countries in my calculation?...
Drop-Shipping
Q: Dear Marie, I'd appreciate your input on the following scenario: 1) UK customer ('A') orders goods from a UK entity ('B'). 'B' places the order with a Chinese supplier and requests that the goods are drop-shipped directly to 'A'. Both UK entities are VAT...
New business and a sub-contractor – help appreciated
Q: Hi All I recently incorporated a limited company to carry out drainage services to homes and commercial properties. This company is not VAT registered as it really hasn't started to get off the ground. Having said that, last week I went to price works at a...
Splitting a business
Q: My daughter has Gents and Ladies hair salon,gross takings approx £85K over the past 12months.She has already had a letter from Inland Rev about VAT. Her ex-husband who works for an accountants, has set up up a Ltd company for the Ladies.(this is the 3rd one he has...
VAT help needed
Q: I run on small online business turning over well under the VAT threshold. I resell a digital product and get charged VAT by my suppliers however I currently don't charge VAT to my customers who are a mix of businesses and consumers. All told I'm losing a few...
September Newsletter 2011
As I sit at my desk dictating this newsletter, the television is full of news articles and various programmes commemorating the 10 year anniversary of the dreadful 9/11 attacks in America. Let's hope that this ten-year anniversary heralds the start of a more peaceful...
Working in Germany, buying in the UK
Q: Hi, I have a VAT registered limited company & I work in Germany and am paid into my UK business bank account. I understand that I will not charge VAT on my services supplied in Germany and I will not claim back VAT on items/services purchased in Germany....
Students from over seas
Q: We are a training school in the UK and occasionally get people from overseas attending our courses, are we supposed to charge these people VAT on the payment for the courses they attend? A: I suspect that your services will be liable to UK VAT because they are...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Single and multiple supplies
I recently took part in a webinar about the subject of single and multiple supplies. My co-presenter was the very accomplished solicitor Chris Bates from Norton Rose Fulbright, who discussed recent caselaw about the subject, while my job was to discuss some of the...
Serviced accommodation
Over recent months, I've had more and more queries about VAT and serviced accommodation, asking whether it's possible to reduce the VAT liability of the income by various means. Unfortunately, it's very difficult to do this. Serviced accommodation is regarded as...
Not another VAT newsletter February 2018
Affiliation fees and advanced learner loans HMRC has withdrawn the concession that allowed affiliation fees for sports clubs to be VAT exempt to be exempt from 1 April 2018: see Revenue & Customs Business Brief 01/2018. HMRC has also confirmed that the receipt...