VAT News

Temporary relief from import VAT and duty is available on PPE and medical equipment if certain conditions are met

The temporary reduction of VAT takes effect from 15 July, affected businesses should check the details.

The extended notification period now applies to Options To Tax exercised in the period from 15 February to 30 June.

The deferral period for VAT payments ends on 30 June. This means that payments due after 30 June (including for May VAT returns) should be made as normal.

The introduction of the Domestic Reverse Charge for the Construction Industry has been deferred until 1 March 2021.

Deadline for submitting a notification of an option to tax has been extended.

The zero rate will apply to many electronic publications from 1 May

Supplies of PPE made between 1 May and 31 July will be zero rated

Requirement for digital links delayed until VAT periods starting on or after 1 April 2021

HMRC announces deferral of VAT payments

HMRC has set up a helpline for businesses who may not be able to pay their taxes on time due to the impact of the coronavirus

Changes to the rules on IR35 have been deferred to April 2021

The UK may have left the EU but some recent changes to the rules on trading within the EU will apply to the UK for the rest of 2020.

From 1 November 2019 some individuals and partnerships may join a VAT group

With a no-deal Brexit on the horizon businesses that trade with the EU need to prepare for the VAT changes that will bring.

HMRC announces deferral of the introduction of the new VAT arrangements

Businesses that must be in MTD with a VAT return period ended 30 June 2019 need to prepare now, if they have not already joined MTD.

From 1 March 2019 there is a change in the VAT treatment of advance payments and deposits

With just seven weeks to go before Making Tax Digital (MTD) is introduced most VAT registered businesses need to be making their final preparations.

If there is no deal big changes will come in for importers and exporters on 30 March 2019.

A change to MOSS may help small businesses – unless Brexit intervenes.

With just over four months to go before Making Tax Digital (MTD) is introduced many VAT registered businesses need to prepare now.

VAT registration threshold unchanged until 2022. Further anti-avoidance measures announced.

VAT Notice 700/22 has been published giving guidance on MTD

From 1 June 2018 owners of public houses can no longer use an automatic 90/10 split for rents or disposals of the building.

All on-line forms dealing with options to tax and revocations of options are currently being updated with the new fax number of the Option to Tax Unit, which is: Fax 03000 516 251 If you need to fax documents to the Option to Tax Unit make sure you are using the...

The pilot scheme for Making Tax Digital (MTD) for VAT was due to start on 3 April and HMRC are adamant that the full version will start on 1 April 2019. With less than a year to go VAT registered businesses need to be sure that their record-keeping and VAT return submissions will meet the new requirements.

The recently published withdrawal transition agreement with the EU says little directly about VAT.  However, it has been agreed that the UK will effectively remain within the EU Customs Union until 31 December 2020 and so this will give businesses more time to adjust...

In a recent case a developer created an unwelcome VAT cost by the method used to transfer a property

The Chancellor has not made many changes to VAT, with Making Tax Digital and Brexit on the horizon this is understandable.

For many years there has been a VAT problem for developers who are converting a part-commercial

HMRC has announced a radically different timetable for the introduction of Making Tax Digital (MTD). 

Negotiations on the terms of the UK’s exit from the EU have begun. There will not be any changes until March 2019 at the earliest, but businesses must be prepared for the effects of leaving the EU, the Single Market and the Customs Union.

From 1 April 2017 a new category has been introduced for "limited cost traders".  HMRC have written to all businesses using the flat rate scheme explaining the changes and have also issued a revised VAT Notice 733 to cover the changes and how to apply them. The change...

The Government has become concerned that some small companies are being set up specifically to take advantage of the VAT flat rate scheme and other tax reliefs offered to small businesses. These companies typically offer labour-only sub-contract services and so do not...

In recent years HMRC has been restricting claims for VAT incurred before registration in regard to assets bought and used in the business before registration.  Contrary to their previous policy, they were insisting that the VAT incurred on assets purchased in the four...

As a general rule VAT on the purchase of a car is specifically blocked. However, if a car is intended for use for business purposes and it is not intended to be made available for private use the VAT may be recovered under the normal rules.  Over the years HMRC has...

A month after the referendum on membership of the EU we are no clearer as to what the future relationship with the EU will be.  VAT is the tax that will be most affected by the UK's departure from the EU but it is unlikely that it will be greatly changed in nature. ...

VAT status of dwellings created by conversion of non-residential buildings A dwelling that has been created by the conversion of a non-residential, for instance by conversion of offices or a barn, is similar in VAT terms to a new-build dwelling.  As long as certain...

The latest version of the DIY Housebuilder claims forms do not show the address to which claims should be submitted. Instead, claimants are asked to call 03000 569 145 to find out the correct address to which their claim should be sent.  Claimants using previous...

HMRC's new penalty regime has always sat uncomfortably with the Do It Yourself Housebuilder Scheme.  Claimants who make incorrect claims not only face unexpected VAT costs but the threat of a penalty to boot.  This has always seemed unfair and illogical.  Claimants...

VAT registered businesses that provide fuel for private use in cars need to take account of the supplies of fuel they are deemed to be making to the owner, partner or employee of the business.  Alternatively, if reimbursement of fuel for private use is required output...

Background On 1 January 2015 the place of supply of certain broadcasting, telecommunications, and electronic ("BTE") services is changing.  With effect from that date the place of supply for BTE services supplied to non-registered customers will be the country where...

The place of supply of broadcasting, telecommunications, and electronic services is changing If you make sales of services via the internet you may be supplying "broadcasting, telecommunications, or electronic ('BTE') services".  For instance, selling software...

This article deals only with the supply of electronic services.  The place of supply rules for broadcasting and telecommunications services are similar but involve a “use and enjoyment” override (see VAT Notice 741A Place of supply of services for more information)....

One of the changes made in last year's budget was the introduction of VAT on the letting of buildings and other structures, often shipping containers, for the storage of the tenants' own goods.  Although this measure was aimed at the self-storage businesses commonly...

Background Machine Games Duty (MGD) was introduced on 1 February 2013 and replaces Amusement Machine Licence Duty and VAT on the machine takings. Anyone responsible for premises where it is possible to play machines subject to MGD must register for MGD and make...

On 1 December 2012, following a ruling in a European Court case, HMRC will be withdrawing the VAT registration threshold for Non-Established Taxable Persons (NETPs).  An NETP is an individual whose normal place of residence is outside the UK or a corporate body that...

Background Before 1 October 2012 if a specific area of land (land includes buildings) was let under a lease or some types of licence the supply was exempt from VAT, unless the land was subject to an option to tax.  The government perceived an anomaly in the VAT status...

In recent years Britain has experienced a boom in cosmetic surgery and procedures.  The old inhibitions on changing our appearance are receding and there is now a wide range of treatments available.  But how much is health care, which is exempt from VAT, and how much...