VAT News
Import VAT is changing on 1 January 2021
If you import goods make sure you are up to date with HMRC’s latest guidance.
Government publishes guidance for trading with or via Northern Ireland
New guidance published on accounting for VAT in Northern Ireland from 1 January 2021
Coronavirus – Extended deadline for notifying an Option to Tax to continue
90 day deadline for notifying an Option to Tax now applies to options exercised before 31 March 2021.
Chancellor’s Statement – VAT measures
VAT temporary 5% rate extended to 31 March 2021.
More time to pay deferred VAT payments.
HMRC changes policy on cancellation payments – with retrospective effect!
HMRC announces that most cancellation and termination payments have always been subject to VAT, despite their previous guidance.
Coronavirus – import VAT and duty relief on qualifying goods
Temporary relief from import VAT and duty is available on PPE and medical equipment if certain conditions are met
Temporary reduced VAT rate for catering, accommodation, and attractions
The temporary reduction of VAT takes effect from 15 July, affected businesses should check the details.
Coronavirus – Further change to Option To Tax notification
The extended notification period now applies to Options To Tax exercised in the period from 15 February to 30 June.
Reinstate your VAT direct debit now!
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.
Construction Industry Reverse Charge deferred again
The introduction of the Domestic Reverse Charge for the Construction Industry has been deferred until 1 March 2021.
Coronavirus – temporary change to notifying an option to tax
Deadline for submitting a notification of an option to tax has been extended.
Zero rating of electronic publications
The zero rate will apply to many electronic publications from 1 May
Coronavirus – temporary zero rating of PPE
Supplies of PPE made between 1 May and 31 July will be zero rated
Coronavirus – MTD “digital links” deadline delayed
Requirement for digital links delayed until VAT periods starting on or after 1 April 2021
Coronavirus – deferral of VAT payments
HMRC announces deferral of VAT payments
Coronavirus – HMRC helpline
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
VAT, Personal Services Companies and IR35
Changes to the rules on IR35 have been deferred to April 2021
Trading with the EU – recent VAT changes
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.
VAT Groups – changes to who can join
From 1 November 2019 some individuals and partnerships may join a VAT group
Brexit – take two
With a no-deal Brexit on the horizon businesses that trade with the EU need to prepare for the VAT changes that will bring.
Domestic Reverse Charge in the Construction Industry
HMRC announces deferral of the introduction of the new VAT arrangements
Making Tax Digital – signing up for MTD
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.
VAT on advance payments and deposits
From 1 March 2019 there is a change in the VAT treatment of advance payments and deposits
Making Tax Digital – final preparations
With just seven weeks to go before Making Tax Digital (MTD) is introduced most VAT registered businesses need to be making their final preparations.
No-deal Brexit – VAT changes
If there is no deal big changes will come in for importers and exporters on 30 March 2019.
Mini One Stop Shop (MOSS) changes on 1 January
A change to MOSS may help small businesses – unless Brexit intervenes.
Making Tax Digital for VAT is almost here – are you ready?
With just over four months to go before Making Tax Digital (MTD) is introduced many VAT registered businesses need to prepare now.
Budget 2018 – VAT thresholds unchanged
VAT registration threshold unchanged until 2022. Further anti-avoidance measures announced.
Making Tax Digital (MTD)- HMRC publishes guidance
VAT Notice 700/22 has been published giving guidance on MTD
Brewers’ Society Agreement withdrawn
From 1 June 2018 owners of public houses can no longer use an automatic 90/10 split for rents or disposals of the building.
Option to Tax Unit – new fax number
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...
Making Tax Digital for VAT – a step nearer
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.
Brexit and VAT – closer to clarity?
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...
Developers beware!
In a recent case a developer created an unwelcome VAT cost by the method used to transfer a property
Autumn Budget 2017 and VAT
The Chancellor has not made many changes to VAT, with Making Tax Digital and Brexit on the horizon this is understandable.
Bad news for property converters
For many years there has been a VAT problem for developers who are converting a part-commercial
Making Tax Digital and VAT
HMRC has announced a radically different timetable for the introduction of Making Tax Digital (MTD).
Brexit begins…
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.
Changes to the flat rate scheme – are you affected?
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...
Autumn Statement – change to the VAT flat rate scheme
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...
HMRC backtracks on pre-registration VAT on assets
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...
In the Zone, claiming VAT on company cars
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...
Brexit and VAT
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. ...
Permitted Development Rights and VAT on property conversions
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...
DIY Housebuilder claims
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...
Penalties and DIY claims
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...
Does your business provide fuel for private use in cars?
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...
Supplies of electronic services – late change to help small businesses
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...
Opening soon – the Mini One Stop Shop
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...
Do you supply services through the internet?
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)....
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