Latest News

HMRC Guidance on VAT and prompt payment discounts

HMRC have published Revenue and Customs Brief 49/14 in respect of suppliers and customer issuing or receiving VAT invoices that offer a prompt payment discount after 1 April 2015. At present, suppliers offering a prompt payment discount are able to account for the VAT on the discounted price, even if the prompt payment discount is not taken up by the customer.

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Increase in the Intrastat arrival thresholds

The UK government has approved a proposal to increase the Intrastat arrivals threshold from £1,200,000 to £1,500,000 as of 1 January 2015.

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Iceland VAT rate changes

From 1 January 2015, Iceland has reduced its standard rate of VAT from 25.5% to 24%. However, the lower VAT rate is increased from 7% to 11%.

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Spanish rule change

Spain has now introduced an import VAT postponement scheme from 1 January 2015. The new Spanish VAT scheme allows the importer to wait to pay back the Spanish import VAT until the next VAT return due date. Previously importers had to pay import VAT at the moment of importation in order to clear the goods through Spanish Customs and then claim the VAT in the next VAT return period. This has a significant impact on cash flow.

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Golf club article

Many of you will be aware from our previous articles that HMRC have been reluctant to release the VAT over declared by not for profit and members golf clubs on visitors greens fees. This is despite the success in the Courts of the lead case involving Bridport and West Dorset golf course.

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Are you or your client’s missing out on the chance to recover VAT on costs relating to pension funds?

There is an opportunity for employers to recover VAT previously lost on costs relating to the management of pension schemes. This change is as a result of a recent European Court of Justice Decision (ECJ).

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Christmas Time!

It is that time of year again when we all get a bit muddled about what VAT we can and can't reclaim.

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VAT refunds for search and rescue charities and air ambulances

From April 2015, UK search and rescue and air ambulance charities will be eligible to claim refunds on VAT they have paid on purchases of goods and services for their non-business activities. The VAT refunds will address the glaring anomaly between the VAT treatment of Government-funded organisations and volunteer organisations providing search and rescue services.

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VAT – Private tuition teaching pilates

The VAT appeal of Christine Joy Hocking was dismissed by the VAT Tribunal. Ms Hocking was a self-employed tutor teaching and offering courses covering pilates and she regarded her supplies as being an exempt supply for VAT purposes under the rules relating to “private tuition” delivered by a sole proprietor partner.

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VAT and Hospices - Exciting News Flash

The Autumn Statement provided some good news for Hospices operated by charities with effect from next year. The Chancellor has announced that Hospices will be allowed to recover VAT on certain costs so that they are in a similar position to the NHS. This change is certain to be warmly welcomed by Hospices as it will mean that the hard won funds they currently receive will go further in providing palliative care instead of losing part as VAT due to HMRC.

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