VAT Blog
Latest news, thoughts and articles from the world of VAT.
Hedging, fund allocation, portfolio protection and VAT
Over recent years, I've attended a few seminars about the subject of property development. These are often run by very successful property developers who have learned how to read the property market very successfully and made a lot of money from their investments. ...
Budget November 2017 VAT announcements
Budget November 2017 VAT announcements See the Chancellor's Budget statement, section 4.18 for more details on specific issues http://tinyurl.com/yb4y77sd Main headlines VAT registration/de-registration limits to remain at current levels (£85k/£83k) for 2 years while...
Paradise Lost and proposals to reduce the VAT registration limit
I recently read an interesting article on AccountingWeb LINK about proposals to reduce the VAT registration limit to a level (not specified) that would bring about an additional 1 million businesses into VAT. The inference was that it could be around the average...
5% VAT rate and residential renovations
Without doubt, one of the most confusing subjects in VAT is the 5% VAT rate and residential renovations. Every now and again, I get a sudden rush of queries from developers and private individuals about when they can claim the reduced rate of VAT and how they can...
VAT News Oct 2017
Hi there It's half-term week already, or coming up depending on where you live. I hope you're enjoying the wonderful autumn weather and that you're keeping busy. My paperback VAT for residential property developers and contractors" is now available on Amazon and even...
One small squiggly letter and property development….
My Dad would have been 101 on Thursday 19th October had he lived. So ever year, around this time, I'm incredibly lucky to remember the most wonderful, loving, principled, sensible and strong man. We were very fortunate to have wonderful parents. When my father was a...
Why is VAT never neutral?
One of the most frustrating things about VAT is that it's not neutral. So what does that mean and why is VAT never neutral? Compared with company tax or income tax, or the "direct" taxes; VAT operates in a different way. For example, if you own a company then you'll...
It’s all about serviced accommodation
I've been out and about talking to a lot of property developers and investors recently. I've been told that the "hot" subject in property (and presumably where the money is) is in serviced accommodation, so I've been thinking about how it fits into the world of VAT...
Deposits, stakeholders, agents and all that…..
We're all used to paying deposits, whether you're buying a car, reserving a hotel room or leasing a house, chances are you'll be paying a decent size chunk of the price up front and often before the transaction is completed. Deposits are usually one of two things:...
Brexit and VAT and what about MOSS?
Brexit and VAT A lot of the coverage about Brexit has focused on the implications for the movement of people to and from the UK. There has been very little about the implications of Brexit and VAT. But of course, the concept of the EU "Single Market" allows for the...
July newsletter
Hi there I hope you're busy and keeping well. Personally, I'm relieved to be back at work for a rest after moving house, which is not recommended when it's 28 degrees celcius outside! . VAT on directors' costs I've recently had a couple of enquiries about claiming...
VAT and directors’ costs
I recently received an email from a client asking for some advice about VAT and directors' costs and when to charge VAT when sharing the costs between associated companies. The VAT liability of payments between associated businesses is the same as between any third...
VAT and non-residential conversions
I'm very pleased to confirm that my latest e-book: VAT for SME residential property developers is now available. For just £19, the book was written with new and SME residential developers in mind; whether it's your first development or you've done several over the...
Additional REsources
A Few Other Resources We’ve Created for Our Customers
What do you do when HMRC gets it wrong?
I'm sure that most of us have received a decision from HMRC about tax that we feel is wrong. You may think that a similar business is paying less VAT, or you may disagree with HMRC’s interpretation of the rules; or in some cases you feel that they have just given you...
VAT and the reduced rate for residential renovations
The most common query I receive about VAT and residential renovations is if/how you, as the property owner, get the 5% reduction for goods and materials. Unfortunately, you can't. This is because the 5% ONLY applies to goods and materials that are supplied and...
Who really benefits if the government reduces the VAT rate?
It's good that the shops are beginning to open and we're getting some sense of "normality" back into our lives. To say that it will be a long road back is an understatement. And, of course, every commentator seems to have their own ideas about how the government can...