VAT Blog
Latest news, thoughts and articles from the world of VAT.
February 2019 Not another VAT newsletter
We're all in Brexit preparation mode at present and HMRC has issued updated guidance for a no-deal Brexit as well as sending letters to those businesses who trade only with EC suppliers and customers. As always, keep an eye out for information that is relevant to you...
See HMRC’s guidance for a “no-deal” Brexit
Check out the information on HMRC's no-deal Brexit page for detailed guidance about how things will work from 1 April if we leave the EC without a deal.
VAT and flipping dwellings
VAT and flipping dwellings One of the most common types of property developing is the practice of “flipping”; i.e. buying an existing dwelling, typically a house, renovating it and selling it. Very often these deals are done within a relatively short timescale,...
2019, VAT, Brexit and all that…
2019: VAT, Brexit and all that…. Well, here we are back again with Brexit on the news all the time And in typical British style, it’s beginning to feel like a Monty Python sketch or at least a real, honest to goodness, British farce. HMRC has issued some guidance and...
It’s getting to that “management charges” time of year again…….
VAT and management charges and why it’s a lot more important than you’d think…..
Management service charges for freehold dwellings
HMRC has recently issued guidance to confirm the VAT exemption for management services for freehold owners of residential property. One of the most confusing issues relating to property is the VAT liability of the care, maintenance and repair of "common" areas of...
The Armistice Centenary – why are we still fighting?
Let me make this clear. I am NOT a pacifist and understand that sometimes, in life, you have to fight for your beliefs, your family, your belongings, your life, the life of others and our country. I would have done my duty for the country if necessary. But the thing...
Renovations and the 5% VAT rate
The most common misunderstanding about VAT, renovations and conversions is when you can get the 5% VAT rate for good and materials, so I thought that I'd try to clear up the confusion. As I've explained below, there is a very important distinction depending on...
Not another VAT newsletter: October edition
Brexit is only a few months away, but with no deal on the table yet, there is very little definitive information about the VAT implications for businesses. HMRC has started writing to businesses with limited guidance so watch out for information, especially if you do...
August newsletter 2018
Well it might have been hot and we might still be in the summer "silly season", but HMRC has been busy with new Business Briefs and information about Making Tax Digital. Revenue and Customs Briefs Revenue and Customs Brief 7 (2018) "VAT - motor dealer deposit...
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
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Why being self-employed isn’t always the right thing…..
Interesting blog that discusses the downsides of self-employment by a well-known business coach, the stuff they don't tell you about and why it's not always the right thing for everybody: http://tinyurl.com/yxwqvydu
And the difference between VAT exempt and VAT zero-rated is….
The difference between VAT exempt sales and zero-rated sales can make a difference to your profit. If you're a bit confused, check out my (short!) video blog, in our "Back to basics" series, where I explain how it all works: http://tinyurl.com/y2y6sw8o
Renovations and proving the 2 year “empty house” condition
Over the past few months, I've received a number of queries about property renovations and proving the 2 year "empty house" condition. This is the rule that says a dwelling must have been unoccupied for at least 2 years, before contractors can charge the 5% reduced...