What is VAT? Value Added Tax is an indirect tax aimed at consumers. If a business meets certain criteria then it has to charge VAT on its sales of goods and services. In a supply chain there are usually a series of businesses selling to each other until the final product or service reaches the… Continue reading VAT Overview
Can VAT on entertaining be reclaimed?
You cannot usually reclaim input VAT on business entertainment however you can sometimes reclaim it for staff entertainment. The notes below primarily come from VAT Notice 700/65 and VIT43200. 1) What is entertainment? Entertainment involves hospitality of any kind, such as: provision of food and drink provision of accommodation (such as in hotels) provision of… Continue reading Can VAT on entertaining be reclaimed?
2018 Autumn Budget Update
As usual there are many changes to the 2018 Autumn Budget, however they’re not all relevant to our clients. So here we have set out the important changes that may affect our clients. The 2 main issues are IR35 changes for contractors and limits on R&D cash refunds. We’ve also added a reminder about the… Continue reading 2018 Autumn Budget Update
MiFID II and VAT on Research – still in the dark!
31 October 2017 Although the MiFID II regulation has been published since 2014 (delayed implementation date – 3rd January 2018), it is surprising that H M Revenue & Customs has not yet provided any firm guidance on the VAT treatment of research work. Recent press states that HMRC is now meeting with industry groups and… Continue reading MiFID II and VAT on Research – still in the dark!
New VAT flat rate scheme limited costs
Old flat rate scheme Prior to 1 April 2017 the old flat rate scheme was very popular with many of our clients as they could earn an extra income under the scheme. Although they were not able to reclaim input VAT on expenses, they didn’t have to pass on the full 20% VAT charged to… Continue reading New VAT flat rate scheme limited costs
VAT for non-EU sellers
Is registration required for VAT for non-EU sellers using Fulfilment by Amazon in the UK? This has been in the news recently and HMRC may have lost £2bn in recent times from non-EU sellers who have illegal evaded VAT and have recently announced methods of enforcing the VAT. This is a tricky subject and can get… Continue reading VAT for non-EU sellers
How does the flat rate VAT scheme work?
If your business doesn’t have to pay much input VAT on its purchases, then it could make an extra profit using the flat rate VAT scheme. So even if it isn’t compelled to register as turnover is below £81,000 it could still be a good idea to register voluntarily. Please refer to the free pdf… Continue reading How does the flat rate VAT scheme work?
VAT and financial services
VAT and financial services: Are you losing out on VAT? VAT and financial services is a very tricky area and this video presentation gives a brief overview: https://www.youtube.com/watch?v=IaYzGej4p0c The main points covered are: 1) VAT and financial services exemptions under VAT Act 1994 Schedule 9 Group 5 (eg money, loans, securities, advising collective investment scheme)… Continue reading VAT and financial services
VAT on Bitcoins
see here for latest HMRC guidance on Bitcoins. http://www.hmrc.gov.uk/briefs/vat/brief0914.htm The post below was written before their guidance was published: VAT on Bitcoins Download the full report here There has been a lot of uncertainty regarding the treatment of VAT on Bitcoins and other cryptographic currencies. This uncertainty has led to a VAT risk… Continue reading VAT on Bitcoins
Delay VAT liability
It is sometimes possible delay VAT liabilities on invoices, and extra care should be taken with the timing of invoices close to the VAT quarter end. VAT Act 1994 The legislation states that VAT becomes due on the earlier of the following possible tax points: the services or goods have been supplied to the customer… Continue reading Delay VAT liability