VAT
VAT on land and buildings
August 18, 2023VAT on land and buildings When you are acquiring a commercial building, you need to know whether the purchase price will include VAT Older non-residential buildings will normally be exempt from VAT, but not if the owner has opted to apply VAT (“opted to tax”) at some point. This option to tax (OTT) is in
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New VAT late filing penalties
March 15, 2023Now that all VAT-registered traders must submit their VAT returns using MTD compatible software (unless they have been granted an exemption), HMRC has introduced a new penalty regime to punish late filing. For VAT periods beginning on or after 1 January 2023, a point is awarded for each late VAT return. A £200 penalty is
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New VAT late payment penalties
March 15, 2023The old system of VAT default surcharges could be quite harsh, as a penalty of up to 15% of the late paid VAT could be levied for paying just one day late. The new system, that applies for VAT periods beginning on or after 1 January 2023, is fairer to those who miss the VAT
Read More New VAT penalties
February 5, 2023All VAT-registered businesses must now comply with the MTD for VAT regulations, which means keeping VAT records in a digital format and using MTD-compatible software to submit VAT returns. The previous portal used for submitting VAT returns online closed on 1 November 2022, or shortly afterwards for certain businesses. For VAT periods beginning on and after 1
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Valid VAT invoices
October 13, 2021Valid VAT invoices It is important to include enough information on your VAT invoices to allow your VAT-registered customers to reclaim the VAT charged. HMRC will block recovery of VAT charged on invoices that don’t clearly state what goods or services were supplied. HMRC officers are particularly looking at invoices in the construction sector (following
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VAT changes for hospitality
October 13, 2021VAT changes for hospitality In July 2020 the government cut the standard rate of VAT to be used in the hospitality and tourism sectors from 20% to 5%. The reduced rate applies to most supplies made by hotels, tourist attractions, members’ clubs and many non-sporting events. It also applies to the food and drink served
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HMRC targets businesses not using MTD
July 19, 2021Most VAT-registered businesses have been required to comply with the Making Tax Digital (MTD) regulations for VAT since 1 April 2019. Until now, HMRC has taken a soft approach to those who have not switched to submitting VAT returns using MTD-compliant software, but that is changing. Around 800 businesses have been told that they will
Read More When Should you be VAT registered?
May 17, 2021In simple terms, you should register if in the last twelve months you have turned over more than £85,000, and you should do this within 30 days of the last day. However, if you are trading with VAT registered businesses then you should consider registering anyway because you will be able to claim back the
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What is an SPV in Property?
March 16, 2021An SPV, Special Purpose Vehicle, is a standard limited company that has been set up purely to transact for one purpose or transaction. When you intend to purchase a property or land to build residential or commercial development, it is common for this to be bought in a newly registered company that has no liabilities
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Construction Industry VAT changes
February 3, 2021From 1 March 2021, the responsibility for accounting for VAT on building works will shift up the supply chain to larger contractors. Building sub-contractors will no longer charge VAT to other businesses in the construction industry. Instead, their building customers will account for the VAT as both a purchase and sale by doing a reverse
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