VAT

Understanding VAT Thresholds: A Guide for Small Businesses

June 11, 2024

Understanding VAT Thresholds: A Guide for Small Businesses Value Added Tax (VAT) is a crucial component of business taxation in the UK. For small businesses, understanding VAT thresholds is essential to ensure compliance and to make informed financial decisions. In this blog post, we will delve into the details of VAT thresholds, how they impact

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Navigating the New VAT Landscape

May 2, 2024

Navigating the New VAT Landscape: What You Need to Know As part of our ongoing commitment to keeping our clients informed and ahead of regulatory changes, Merranti Accounting is spotlighting the latest adjustments in VAT regulations that could significantly impact your business operations and financial planning. Here’s what you need to understand about the recent

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How does VAT work with commercial properties

April 24, 2024

It’s customary for leases between landlords and tenants to outline the services the landlord will provide and what the tenants are responsible for regarding the upkeep of the entire building. The lease might specify an all-inclusive rental fee. Whereas it may stipulate that tenants contribute through an additional charge on top of the base rent.

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DIY VAT: Self billing

April 24, 2024

Typically, suppliers issue VAT invoices, but in certain cases, customers prepare and provide them to suppliers. This process is known as “self-billing.” Any business can adopt self-billing if it meets specific conditions. To begin using self-billing, no prior approval from HMRC is necessary. Businesses need to ensure compliance with legal conditions outlined in SI 1995/2518,

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The tax consequences of buying a double cab pickup

March 6, 2024

How a double cab pickup is taxed The quick answer is that as long as the vehicle can be classified as primarily a goods vehicle, it can be beneficial to be owned by the limited company. If it is classified as a car it generally is not beneficial and should be purchased privately instead. The magic

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Blissful biscuits

February 16, 2024

Blissful biscuits The rules about whether food is standard rated or zero-rated for VAT purposes are notorious for having some provisions that are open to interpretation. As has been shown in a recent case. United Biscuits (UK) Ltd manufactures McVitie’s ‘Blissfuls’. For the benefit of those of you who have not sampled them, they consist

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Cars for business: VAT issues

February 16, 2024

Cars for business: VAT issues In our Autumn 2023 Newsletter, we covered a number of the tax issues associated with business cars, such as capital allowances and employee benefits. As promised, we now highlight some of the key VAT points of which to be aware. What is a ‘car’ for VAT purposes? The definition of

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VAT on land

VAT on land and buildings

August 18, 2023

VAT 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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When to register for VAT

New VAT late filing penalties

March 15, 2023

Now 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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VAT penalties

New VAT late payment penalties

March 15, 2023

The 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

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