VAT Blog
Latest news, thoughts and articles from the world of VAT.
What’s the real VAT cost of a property development?
If you want to avoid mistakes and unexpected VAT bills, you need to do the VAT planning for your development as part of the initial financial planning for the project. It might seem obvious that the VAT cost of a development is the difference between the VAT you pay...
Renovations and the confusion about the 5% VAT rate
The most common misunderstanding about VAT and renovations is when you can get the 5% reduced rate. So I thought that I'd try to clear up the confusion. The basic rule is: If you are purchasing goods only, the retailer has to charge 20% VAT. That's it. And no, you...
When is it VAT planning and when is it fraud?
I'm often asked if it's okay to "do it this way" to avoid a VAT liability. More recently, a potential client with a potential £80k liability said "I'll pay you if you can find a way out of this VAT cost". This was not a grey area - the company had simply not...
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...
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VAT on transactions between associated businesses: Back to basics part 2
This is the second of 3 posts discussing VAT on transactions between assocated businesses. In this post, I'll be taling about terminology and how otherwise everyday words or phrases can have quite different meanings for VAT. Remember the basic principle - you can...
Back to basics: Transactions with associated business
One of the most common problem areas in VAT is dealing with VAT on transactions with associated businesses. This includes sharing out the office rent or raising a management charge for directors' services. This is the first of 3 posts that I'm planning on the...
COVID; answering your queries and the new rules for sub-contractors
I cannot believe that it's already April. If, like me, you have have been affected by COVID either medically, professionally or for any other reason, then chances are you're struggling a bit even if you're past the worst. God Bless to anyone who is struggling...