VAT Blog
Latest news, thoughts and articles from the world of VAT.
Accounting Issues
Accounting Issues There are several VAT issues that are actually driven by the accounts or the accounting procedures and we've summarised some of the most important ones in this section. And even though VAT officers aren't accountants, some now receive specialist...
How We Can Help
Free resources for accountants and other professionals There are a number of free resources here on VATExchange: Use the forums for quick and practical advice on everyday VAT issues. Our own technical articles which are written for the accountant and the business...
How We Work With Accountants
Who needs a VAT consultant? Accountants are very good at VAT. But there are times when you simply don't have the expertise and need to call on a VAT specialist to help your client, such as dealing with a VAT assessment or unusual transactions. That's where VATExchange...
Raspberries and Partial Exemption
I can't believe we're now into the second week of September. I spent most of last week stuck to my laptop working on the new content for the website, which I'm hoping to upload and relaunch within the next week or so. Then I can get out and concentrate on the proper...
VAT on new build properties
Q: Understand that new build is VAT free if you are going to live in the property yourself, but not if it will be let either as a holiday let or to a long term tenant. Would like to find out if there is any way round this legally i.e. to register for VAT as a one off...
Wrongdoings, Yachts, Online Service Events w/c 24 August 2009
HMRC issued R&C Brief 52/09 on 24 August 2009 which gives details of the new VAT and Excise Wrongdoings Penalty that is due to be implemented on 1 April 2010. On 26 August 2009, HMRC issued R & C Brief 56/09 to clarify their position about the VAT issues...
Margin and Qualifying VAT
Q: Can you explain how these two work within import and export please? A: Hi Well it’s a bit of a big topic to cover in a forum reply. The best thing is to tell you where to look for the HMRC published guidance so that you can read up on it yourself to begin with....
Homeserve IPT ruling, s33 and voluntary aided schools; and legal professional privilege
17 August 2009 HMRC has issued R&C Brief 47/09 which confirms that they will not appeal against the ruling in the Homeserve IPT case. R&C Brief 53/09 sets out HMRC's revised policy about VAT recovery by local authorities on expenditure relating to capital...
Reversion of VAT rate to 17.5%; Option to tax property; Compliance checks and errors
On 13 August 2009, HMRC issued new detailed guidance about the reversion in the standard rate of VAT to 17.5%, as well as details of the anti-forestalling legislation. HMRC issued Revenue & Customs Brief 51/09 and VAT Information Sheet 14/09 to replace the...
New DIY Housebuilders forms
Two new claim forms have been issued for DIY homebuilders who want to recover VAT on building materials. From 15 August 2009, homebuilders who are constructing brand new homes will be required to use form 11A, whilst those who are converting existing buildings are...
Double checking basic VAT information
I had a bit of an embarrassing situation recently which reminded me about the importance of double checking basic VAT information. I was at a meeting with an accountant and we were discussing various problems he had discovered at a new clients in advance of a VAT...
Option to tax land and buildings
HMRC has issued VAT Information Sheet 12/09 which contains information about detailed changes to the option to tax which take effect on 1 August 2009. They include changes to the following: relevant associate rules real estate elections revoking options after 20 years...
VAT receipts and more lousy weather
Well I’m certainly no economist but looking at the recently published annual report from HMRC I can see why we’re in a financial mess. During 2008/9 receipts of income tax, VAT and corporation tax – the three highest sources of government of revenue – are down from...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
Buying property VAT exempt using VAT1614D: The FAQS
If you’re buying an old barn or pub to convert into your home, or buying an office block to convert into luxury apartments, you can avoid (legally!!) paying VAT on the purchase even if the vendor has opted to tax the property. How? By using the VAT 1614D procedure....
Why you should avoid paying £250,000 for land or buildings.
Why you should avoid paying £250,000 for land or buildings. There are lots of good reasons for avoiding certain payment points, whether for tax purposes, stamp duty, or simply because of your budget. And here’s another one: £250,000. So why? It’s because £250,000 is...
VAT on cars, the law and trivial matters
VAT on cars, the law and trivial matters: de minimis non curat lex. It's a generally well know fact that VAT can't be claimed on company cars if they are used for any non-business purposes. There are certain specific exclusions such as new cars for resale, taxis and...