VAT Blog
Latest news, thoughts and articles from the world of VAT.
New Build for Holiday Letting
Q: Hello, I have looked at this site for the first time only a couple of hours ago and see some very useful advice. Some of it almost answers my question already; but not quite. My wife and I own a small farm business. NOT VAT registered. We do a little trading but...
Heads HMRC Wins; Tails The Taxpayer Looses….
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...
Sold VAT opted property and omitted to charge VAT
Q: Hi, HMRC have investigated a transaction where the Seller company had opted to charge VAT but innocently neglected to tell its advisors - sale went through with no VAT being charged on the Price. HMRC are now looking for a VAT payment. Purchaser was registered for...
International VAT questions
Q: Hi, new to the forums, please redirect me if this is covered elsewhere. 1. My VAT registered limited company purchases online services (data and document storage, and the software interface to access that data) from a US based company. I sell this on to...
VAT on vintage/used clothing
Q: Hello! I'm planning on starting a vintage shop and a bit stuck for information on VAT issues. Does anyone know if used clothing is VAT exempt? Should we charge VAT on the sale of our second hand goods in our small shop? Is there a threshold on VAT exempt sales (we...
Get it in writing!
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...
EU VAT treatment with drop shipments from Asia
Q: Dear All, A UK VAT registered company orders goods from China. The Chinese company sends the goods directly to the 3rd party customer in Czech (the consignee) who clears the goods through customs. The invoice from China states the buyer is the UK company. The Czech...
VAT Invoices
Q: I am hoping you guys can help. I have a few invoices from retail suppliers at the moment that do not meet the criteria of a VAT invoice. Basically as part of my business I pick up stock from others in the same business as me when they put theres on sale. I buy it...
The Flat Rate Scheme and Bank Interest
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...
Intermediaries and VAT
Q: I hope you can help. I have reviewed all the hmrc guidance notes and still a little unsure. Its a bit of a story and I apologise but I really need to get to the bottom of it, I have discussed it with my accountants and they haven't been a great help, back to hmrc...
separating business activities to avoid vat
Q: I run events from a pub that has a function room, they supply, food, beer and charge us room hire as well. They are going to start a second limited company that will not be vat registered so that they can avoid paying the vat on any events in the function room. Is...
i need some advice on vat registration
Q: Im self employed with a major parcel carrier. They want us to be vat registered. I only turn over 50k per year. Can they make us be vat registered. Also would it be worth it for me or would i end up owing the tax man lots of money. My fuel only comes to £700 per...
Which EU member states operate Flat Rate Scheme
Q: Dear all, I was just wondering, which out of the 27 member states operate a simplifed VAT scheme along the lines of the Flat Rate Scheme here in the UK. If anyone knows, or can point me towards online resources, then that would be very much appreciated. Thanks in...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Serviced accommodation podcast
If you're considering serviced accommodation as a business activity, you may find this podcast helpful http://tinyurl.com/ydg3fmlt It's about some of the most important VAT issues relating to serviced accommodation and particularly the income side of things,...
VAT and pub conversions and other DIY building projects
VAT and pub conversions is a bit of a big subject. But in this blog, I'm going to discuss when a pub conversion, or a conversion of any commercial property, qualifies for a DIY claim refund. This blog isn't about technical stuff such as the reduced rate on...
Who has time for VAT avoidance?
It's the start of the first full working week of 2018. I like the new year and the sense of renewed resolution and it's a good time to think about the year ahead and how we're hoping to use the time. And one of those things is wondering just who has time for VAT...