VAT

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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VAT penalties

New VAT penalties

February 5, 2023

All 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, 2021

Valid 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, 2021

VAT 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

HMRC targets businesses not using MTD

July 19, 2021

Most 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

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When to register for VAT

When Should you be VAT registered?

May 17, 2021

In 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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