VAT Blog
Latest news, thoughts and articles from the world of VAT.
University trading companies and option to tax changes
11 March 2010 Revenue & Customs Brief 09/10 HMRC confirms their revised policy on the status of university trading subsidiary companies. 15 March 2010 Revenue & Customs Brief 08/10 Changes to the operation of the option to tax and updated definition of...
Partial Exemption De Minimis rules, VAT Online Services and New Inaccuacy Penalty
6 March 2010 New Inaccuracy penalty HMRC announced new details of the new inaccuracy penalty to take effect from 1 April 2010, including the potential application of the penalty to third parties, eg tax advisors or agents. Setting up reminders for VAT Online Services...
Sandwiches & Vat
Q: I own a sandwich shop and catering business I would just like some clarrification on the vat. I charge vat on outside catering i charge vat on hot food. If a customer comes into the shop to buy a Cold sandwich i dont charge vat. If a customer rings up and orders a...
VAT to UAE
Q: Hi There I'm carrying out an event in Abu Dhabi but unsure whether to charge VAT. The service will certainly take place in Abu Dhabi so as i understand it no VAT should be charged, but a UK based company are paying for the services so should i add VAT to the...
Splitting & Registering part of a business for VAT
Q: My sole trader business creates and builds new longcase clocks, the vast majority of which are sold directly to buyers in the England and the EEC. Last year I decided to set up a separate business selling clock mechanisms to self builders. All of the mechanisms are...
Is this right?!?!
Q: Hi I'm a newbie at this so hoping I have posted in the right place. Was out for a meal the other night with various friends etc several of whom are sole traders. As always they manage to turn every conversation around to business when intended for pleasure! I was a...
Updated Notices on Intrastat, Investment Gold Coins and supplement to VAT Notes 4 2009
HMRC has issued the following new notices: 4 February 2010 Updated Notice 701/21A: Investment Gold Coins which explains the exemption applying to investment gold coins. 8 February 2010 Revised Notice 60: Intrastat which contains updated information about Intrastat...
Adjusting a Flat Rate VAT Return
Q: Hello there, I submitted my first Flat Rate VAT return at the end of last October. Unfortunately, due to some confusion between myself and a third party company I use to do my invoicing for me, the "Total VAT Inclusive Turnover" I submitted in Box 6 of my VAT...
EC VAT Anomolies: VAT Planning or VAT Avoidance?
The old issue of “is it planning or is it avoidance?” comes up regularly in VAT. Cross border transactions within the EC where different member states have different interpretations of the EC rules often cause concern to HMRC. HMRC has recently published the latest...
End of the current 15% era
Well so it was an official white Christmas, very pretty and stuff! But now I just wish that the council would get out and grit the pavements as I’ve more than once nearly measured my length on the pavements here in Leeds. And unfortunately it looks as though there is...
Non EU…….but registered in UK….
Q: Hi Guys, My first post here... I am not an accountant, but a company director, but since we are in holidays, and my accountant has shut, I thought I may get a quicker reply here... I did a search on the old HMRC website, and didn't really get anywhere. In short, my...
The VAT Rate Rise: Remember the Normal Tax Point Rules
I've had a lot of queries about the VAT rate rise and how it will affect specific transactions. And in most cases, there is a lot of unnecessary confusion about certain aspects of the change and I thought it was worth reminding everyone of the most important...
VAT payable in case of sale of goods bought VAT-free
Q: Hello, I wonder if someone can answer this question for me. A couple of years ago I bought a private aircraft from a Swedish dealer who had a Danish company (so it was bought VAT free, because at that time there was no VAT payable on aircraft in Denmark). I believe...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Dealing with VAT clauses in contracts
Whether you're buying a car, selling your restaurant or signing a property lease, you have to sign a contract. As a VAT consultant, I'm often asked to review contracts and VAT clauses, so over the years I've spent a lot of time reading contracts to see whether the...
Buying opted properties VAT free and the importance of the correct procedures
I've recently been advising a couple of clients about VAT and property transactions that should end up with no VAT cost (or minimal VAT cost) to the developer or HMRC. One of my clients, who owns a very successful residential property business, was asking about the...
Three ways to save VAT on DIY property developments
How to save VAT on DIY residential property development Doing any type of property development is expensive. The usual rule of thumb seems to be that it will always cost you at least double your initial estimate. And you should then add VAT at 20% to the whole...