Covid 19: Our website and phone lines are operating as normal and our teams are on hand to deal with all enquiries. Meetings can be conducted via phone & video conferencing.

News

Welcome to our news section, where you can find all of our latest articles and newsletters, useful VAT advice and press releases. To ensure you never miss out on the latest news from The Vat People, why not sign up for our email newsletter?

Scroll down to read our news, explore our Advice Hub, read our latest newsletters and find out more about The Vat People Network.

HMRC have released a brief concerning partially exempt businesses whose trading activities have changed due to coronavirus.
Read More
In an effort to ensure that all UK businesses with a taxable turnover exceeding the VAT registration threshold are accounting for VAT on relevant supplies in line with their VAT obligations, HMRC have issued letters to those they believe are trading above the threshold but have not yet registered to ascertain whether retrospective action is required.
Read More
HMRC have announced the introduction of the SME Support Fund which aims to provide qualifying businesses with grants of up to £2,000 that are intended to support small to medium-sized businesses in light of the UK’s exit from the EU and, consequentially, the Customs Union, who are new to importing/exporting goods.
Read More
As announced in the Budget of 3rd March 2021, the temporary reduced rate applicable to the hospitality sector has been extended. This relief was originally introduced to support the hospitality and tourism industry during the ongoing coronavirus pandemic and was due to end on 31st March 2021. As announced by the Chancellor yesterday this has now been extended a further six months to 30th September 2021.
Read More
As part of the expansion of the scope of Making Tax Digital (MTD), it has been announced that from the first VAT period occurring after 1st April 2022, all UK VAT registered businesses will be required to submit VAT returns using MTD compatible software.
Read More
HMRC have announced a reform of the current penalty system relating to late submission of VAT returns and late payment of VAT liabilities. Instead of an automatic financial penalty being applied to taxpayers who fail to meet their obligations in either of these areas, points will be accrued depending on the error involved and on cumulation of certain number of points, a financial penalty will be imposed.
Read More
As announced on the 24th December 2020, the UK and EU have signed a Free Trade Agreement, defining their future relationship now that the transition period has ended and the UK has left the EU and, consequently, the Single Market and Customs Union. While the agreement affirms an ongoing commitment to tariff-free trade, there are still a number of new trade barriers and regulatory considerations that were not applicable under pre-existing arrangements when the UK was a member of the European Union. Given this, UK businesses that trade with EU Member States, and vice versa, should familiarise themselves with the agreement and the impact this will have on ongoing trade.
Read More
As a result of new customs formalities arising from Free Trade Agreement, importers and exporters in the UK and EU will be required to consider the rules of origin that were not applicable prior to the end of the transition period. Crucially, in the event goods qualify for preference, sufficient evidence will need to be provided/held.
Read More
In the event duty is applicable when goods enter the UK in addition to when the goods are exported to EU Member States, there are a number of duty saving strategies businesses should consider, ranging from short term measures to long terms solutions. These include;
Read More
Calculating VAT can be an incredibly complicated process for charitable organisations. Therefore, it is no surprise that mistakes are commonly made among charities that fail to recognise they are applicable to many of the same rules as regular businesses. Further to this, The Office of Tax Simplification has initiated a review into the application of VAT with respect to reliefs and exemptions and as a result the House of Commons Treasury Committee has launched an inquiry into tax after coronavirus.
Read More
HMRC have published a brief relating to the VAT treatment of school holiday clubs. This update comes as a result of a case heard by the First-Tier Tribunal in relation to RSR Sports Limited and will be of significance to any business making supplies of this nature, particularly those who may have treated these supplies incorrectly and as a result could be liable to recover output VAT that has been incorrectly overpaid.
Read More
On importation of goods into the UK, any relevant customs duties become due immediately at the time of import. If a business holds a Duty Deferment Account this becomes payable on the 15th of the month after the month of import – as a result, importers with a Duty Deferment Account can delay payment of customs duties by an average of 30 days. Import VAT incurred by VAT registered importers after 1st January 2021 will be declared via VAT return under postponed accounting.
Read More
The UK left the European Union as of 31st January 2020 however the impact of this withdrawal on businesses was delayed until the end of the transition period, 31st December 2020. While within the transition period, the UK is still in effect a member of the single market and customs union and as such normal rules apply.
Read More
On the end of the transition period and the UK leaving the Customs Union, there will be many things for importers to consider that they may not have had to take into account before.
Read More
As with importers, there will be a wealth of new considerations for UK-based exporters on the conclusion of the transition period.
Read More
Construction of a building intended for use solely for a relevant residential purpose or a relevant charitable purpose is zero-rated for VAT purposes.In the case of Capernwray Missionary Fellowship of Torchbearers v HMRC.....
Read More
When and if the UK exits the single market, UK businesses that sell goods to consumers in other EC member states such as businesses trading on Amazon, eBay or similar online platforms will no longer be able to register for VAT under the distance selling rules in other EC member states, so any current distance sales VAT registrations in other member states will become invalid. The goods sent from the UK to EC end consumers will instead become subject to VAT and duty at the point that they clear into the EC from the UK.
Read More
A VAT registered company, Swanfield Limited, which also had three associated companies, entered the default surcharge regime during 2009 when it failed to pay a number of VAT returns at the correct time. HMRC subsequentl.....
Read More
Currently, the supply of installing energy saving materials such as solar panels, insulation and wind turbines attracts the reduced rate of VAT (5-) if made by installers and the supply is provided in relation to ‘resi.....
Read More
We can assist you if you: • find VAT a real puzzle, • wonder if the majority of VAT publications are written in a strange foreign language, • are concerned about what Brexit means when your business accounts for VAT, or; • simply require a refresher to supplement your VAT knowledge and add to the bundle of evidence that your organisation carries out due diligence
Read More
In response to the coronavirus pandemic, HMRC have announced the temporary zero-rating of supplies of Personal Protective Equipment (PPE) recommended for use by health and social care workers by Public Health England.
Read More
If you are a grant funded organisation VAT can be a very confusing area especially as grants now commonly come with a range of conditions to be met akin to a contract. This can make determining if VAT is due on the funding quite difficult. However, it has generally been accepted that subsidies are outside the scope of VAT.
Read More
As sales via online marketplaces such as eBay and Amazon increase approaching the Christmas period, sellers have been warned that under EU law they could be held jointly liable in the event of offending traders avoiding .....
Read More
A recent Customs Duty case has highlighted the need for any businesses that import goods from outside the EU to be proactive when deciding on what commodity codes should be used. These determine the rate of duty payable .....
Read More
With effect from 1 October 2019 businesses involved in supplies of construction services will be need to change how they account for VAT. If the supplier is making a supply of services that are liable to the reverse charge it will still need to issue VAT invoices but will not declare and pay VAT to HMRC. Instead its customer will become responsible for accounting for VAT by making a reverse charge, unless the customer is an end user of the services.
Read More
It can be difficult to write about Brexit as there seems to be a Brexit fatigue syndrome creeping in, however, the deal announced on 17 October 2019 between the UK Government and the EU certainly made for interesting reading.
Read More
The change to the flat rate scheme is specifically designed to impact adversely on businesses such as consultants who have benefited from being able to retain the difference between the VAT payable to HMRC and the amount.....
Read More
In the past HMRC would allow employment agencies to rely on the staff hire concession and only account for VAT on their administrative fees rather than on the fee plus the staff salary and other emoluments. This was cash.....
Read More
In the case if Simon Newell vs HMRC, the appellant provided tuition in motocross riding and motorcycle maintenance to young people over the age of 4 which was treated as falling under the scope of exemption from VAT on t.....
Read More
HMRC are extending the soft-landing period for businesses that can evidence that it is not practical for them to implement digital links across their accounting systems prior to the relevant deadline.
Read More
It is a fundamental VAT principle that in order to allow a taxable person to recover input VAT, the VAT incurred must have been in relation to goods or services that were supplied for the purpose of VATable business acti.....
Read More
Under Schedule 8, Group 5, the construction of a building that is to be used for a relevant charitable purpose can be zero-rated for VAT purposes. This applies to buildings that will be otherwise then in the course or fu.....
Read More
A new EU directive, commonly referred to as DAC6, aims to tackle 'aggressive tax planning arrangements' by intermediaries by way of implementing a mandatory disclosure of information relating to cross-border arrangemen.....
Read More
In the matter of All Answers Limited vs HMRC, the Appellant ran a largely online business whereby customers were able to order various essays, pieces of coursework, etc, written by third-party writers who had no direct interaction with the customers. All Answers Limited would retain two thirds of the fee paid by the customer, with the remaining third being paid to the writer. The Appellant’s position was that they were acting as an agent for the various writers and as such the supply of academic work was between the writer and the customer. The VAT implications of this arrangement were such that the Appellant was not obliged to account for VAT on the full amount paid by the student, although VAT was still accounted for on the two-thirds of the payment that were considered the commission element.
Read More
Effective 1 April 2019, HMRC intends to digitise VAT accounting and consequently, from that date, all businesses that make taxable supplies above the VAT registration threshold of £85,000 will be required to submit their.....
Read More
HMRC have provided an update regarding the VAT treatment of early termination fees and compensation payments. Under previous interpretation any payments received that related to the withdrawal from agreements under which goods or services were supplied were treated as outside the scope of UK VAT.
Read More
There are reliefs available to charities whereby advertising services can be purchased at the zero rate subject to certain conditions. Excluded from relief are instances where a charity has selected a specific individual to receive advertisements. Examples of such advertisements that do not qualify for zero-rating include those sent to e-mail address as these are targeted to the specific recipient.
Read More
The Office of Tax Simplification (OTS) is working on reviewing the existing VAT legislation and considering areas that require reform, all in the context of a post Brexit VAT Act that is not overridden by EC legislation......
Read More
It might seem an odd time to consider VAT training as the pandemic restrictions gradually ease and the UK starts up for business again. However, this is a really good time for businesses to make sure that they fully understand their VAT obligations. So much has changed due to the pandemic, not just in terms of how businesses operate but also with:
Read More
If you are a UK business that intends to trade in the EU post 31 December 2020 you will be doing so in a much changed VAT landscape. Currently UK businesses supplying an EU customer base must treat sales as VAT free in the UK where the supply is business to business (subject to additional criteria) and charge VAT at the rate and in the VAT jurisdiction that is applicable if their customer is not in business.
Read More
The VAT People and its sister company The Customs People are presently assisting a number of businesses based in the UK, EU and outside the EU to ensure that they are ready to continue to trade if the United Kingdom leaves the EU on 31 October 2019.
Read More
Whilst HMRC take an understandably aggressive stance towards businesses that fail to register and account for VAT by the due date, they can be frustratingly slow to process registrations made on a voluntary basis, leading to cash flow issues for the business that intended to register in order to recover VAT on set up costs.
Read More
HMRC have announced that changes will be implemented to VAT accounting for VAT groups in light of the European Court of Justice decision in the case of Skandia America Corporation (Skandia). This case is interesting as i.....
Read More
As announced by the Chancellor yesterday during the summer economic update, a number of temporary VAT reductions have been introduced to help boost several sectors most impacted by the ongoing coronavirus pandemic.
Read More
HMRC have announced a delay in processing VAT refunds for non-EU businesses for the period 1 July 2018 - 30 June 2019, submitted on or before 31 December 2019. Valid claims submitted in relation to this period are now expected to be processed by 30th September 2020.
Read More
As lockdown restrictions continue to ease and the economy takes tentative steps towards restarting, it has never been more important for businesses to ensure they are meeting their VAT obligations. This is especially true of those involved in land and property transactions, one of the most complex and high value areas of VAT.
Read More
HMRC has revised its policy on when they will allow zero-rating for the construction of dwellings, where part of an original building is retained. The general rule for zero-rating is that an existing building must be dem.....
Read More
The Upper Tribunal heard an appeal by Findmypast of the First-Tier Tribunals decision to reject the their claim for repayment of VAT which had been incorrectly accounted for on unredeemed vouchers purchased for accessing.....
Read More
We are asked repeatedly what the VAT position will be post the UK existing the EU. The short answer is that no real guidance has been published as yet so it is a relative unknown. The reality is that it is highly unlikel.....
Read More
As a result of HMRC's appeal against the decision made in the case of HMRC v National Exhibition Centre Limited, the Upper Tribunal have now confirmed the VAT treatment of debit and credit card handling fees.  This issue.....
Read More
Vehicle Control Services Ltd appealed against the First-Tier Tribunals decision, which stated that it is necessary to apportion input VAT on general overheads when supplies that are outside the scope of UK VAT are made w.....
Read More
The European Court of Justice have ruled, after a dispute in a Swedish Court, that the trading of digital currency is exempt from VAT including the exchange for real currency. This ruling applies to the whole of the Euro.....
Read More
Changes are being implemented to simplify the VAT treatment of call-off stock moved from the UK to another Member State (MS) or vice-versa.
Read More
Officers of HMRC are only human and VAT is complex so it is possible for HMRC to make errors in assessing the VAT liability of businesses, and equally HMRC may be correct that VAT has been understated. However assessment.....
Read More
A four year limitation period applies when it comes to taxable persons submitting a claim for the repayment of overpaid VAT. This limit was addressed in a case where the Appellant, The Holloways, a band & partnership for.....
Read More
We often deal with businesses that have assumed that commission income they receive in relation to insurance services and financial services is VAT exempt. Unfortunately this is not always the case as in order to be VAT .....
Read More
In a recent case heard by the First-Tier Tribunal Hastings Insurance Services Limited, a UK based company, provided claims handling services to an associated company, Advantage Insurance Company Limited, based in Gibralt.....
Read More
The government has announced that a system of postponed accounting (with VAT declared/recovered via the VAT return and not physically paid at the point of import) will be introduced for all goods imported into the UK by VAT registered businesses from 1 January 2021.
Read More
HMRC have released a VAT Information Sheet following the decision of the Court of Justice for European Union in Bridport and West Dorset Golf Club. HMRC accepts that supplies of sporting services made to both members and.....
Read More
Wakefield College, a charity, provided a wide range of both academic and vocational courses to 10,000 students and was financed in the main by grant funding. This income was supplemented by fees charged to students or th.....
Read More
When it comes to making a 13th directive repayment claim for VAT incurred in the UK by traders registered for a business purpose outside the EU, it is important to provide the correct supporting documentation.This was th.....
Read More
Towards the end of 2015, the First-Tier Tribunal heard a case relating to the flat-rate scheme for small businesses after KDT Management Ltd (the Appellant) had been assessed by HMRC for allegedly using an incorrect flat.....
Read More
The Pennine Care NHS trust provides services to people with mental health issues and, in 2009, began the construction of a new, low security, mental health unit at a cost of approximately £10 million that would provide s.....
Read More
HMRC have issued new guidance for businesses who supply goods by way of hire purchase agreement, specifically relating to the deduction of input VAT related to such supplies.
Read More
The Upper Tier Tax Tribunal has reversed the decision of the First Tier Tribunal in the case for News Corp UK & Ireland Ltd . The case relates to the VAT treatment of newspapers that are supplied as digitised products.
Read More
UK businesses that have incurred input VAT in an EU Member State where they are not established and make no supplies are entitled to recover the VAT element of these costs by way of a cross-border refund scheme. Any pote.....
Read More
The budget is a somewhat quiet one from a VAT perspective but could indicate that more wide ranging changes are on the horizon.  The headline grabbing news is the change to stamp duty, which whilst not VAT related, may w.....
Read More
Within the Autumn Statement, delivered on the 23 November 2016, it was announced that a new 16.5- rate will be introduced within the Flat-Rate Scheme aimed at businesses with limited costs.  This new percentage will come.....
Read More
The presence of a special refund scheme aims to put D-I-Y builders into a similar positions to that of a developer selling a zero-rated property by refunding any VAT incurred on the costs of construction-conversion. This.....
Read More
We have recently had a number of calls from client's using the new cloud based software packages. A common theme seems to be that the business assumes that the software will be able to identify and block VAT recovery whe.....
Read More
Careless or deliberate inaccuracies that lead to an understatement of tax can result in a penalty being charged by HMRC. This penalty is expressed as a percentage of the potential lost revenue and can be as much as 100- .....
Read More
We are continuing to receive a number of calls on our helpline from property developers and their advisors seeking clarification of the VAT liability of construction or conversion costs, and requesting advice in relation to the recovery of VAT on costs relating to property development schemes
Read More
HMRC rejected £9,106.22 of Mr Coates claim on the basis that VAT had been incorrectly charged by the supplier on a number of invoices meaning it was not valid for reclaim. Upon investigation, it transpired that the claim.....
Read More
CIOT has just published the results of its survey on the use of MTD which makes for interesting reading with amongst other findings 90% of respondent stating that MTD did not reduce errors and the cost of compliance has far exceeded government estimates. The results of the survey are being shared with HMRC and the government, so is the system working in practice?
Read More
HMRC rejected a claim made by Shanklin Conservative and Unionist Club for the repayment of overpaid output tax which was submitted by the Appellant to recover VAT charged on membership fees that they believed qualified f.....
Read More
UK VAT legislation states that any VAT incurred on the entertainment of employees, for example the provision of; food, drink, accommodation, theatre-concert tickets, is done so wholly for a business purpose and is theref.....
Read More
The EU has released their latest guidance covering the new rules in relation to online marketplaces being responsible for VAT on the sale of goods.
Read More
If you or one of your clients are making taxable supplies in the UK, it is fundamental to establish the correct VAT treatment of those supplies at the earliest opportunity to ensure that this does not cause complications.....
Read More
Several years ago the Court of Justice for the European Union ruled in favour of the taxpayer in the case of Bridport and West Dorset Golf Club.  In its judgement green fees paid by non-members to a non-profit making mem.....
Read More
The health care exemption applies to the supply of services made by a medical practitioner that is on a register that is recognised by HMRC and the supply is that of services related to the care, protection or maintenance of the patients health.
Read More
VAT is a complex area for many organisations, not least those that provide supplies of education services. In order to meet the criteria for exemption, certain conditions must be met.
Read More
Our VAT training services are proving very popular with both accountants and their clients. From the feedback that we have gathered the reason for this is that the training is tailored to the individual client's needs an.....
Read More
Big changes to the EC wide VAT accounting system are likely to be introduced by the EC with effect from 2017 with a view to combatting EC wide cross-border VAT frauds. The Commission estimates that a staggering 50 billio.....
Read More
Starting 3rd August 2015, any taxpayer that has agreed payment of a debt to HMRC in monthly instalments will be required to make these payments by Direct Debit. HMRC only permit the payment of debts of this nature to be .....
Read More
HMRC have published a brief relating to the VAT treatment of conversions of non-residential buildings into dwellings that are the subject of of PDRs (permitted development rights). PDRs are relevant to specific developme.....
Read More
From 1 November 2019 partnerships, sole traders and other unincorporated businesses can join a VAT group if they control the other corporate bodies in that group.
Read More
The Office of Tax Simplification reported on 7 November 2017 on the UK VAT system and made a significant number of recommendations; one of which has already been acted upon, namely potential changes to the VAT registrati.....
Read More
As previously advised, HMRC have announced a new initiative in respect of certain construction services where the recipient of the supplies will be responsible for accounting for VAT and not the supplier.
Read More
HMRC refused The Wellcome Trust Limited's claim for repayment of VAT incurred on the purchase of a capital asset in the form of a building and construction services. This decision was appealed and heard by the First-Tier.....
Read More
Boxmoor Construction Limited (“Boxmoorâ€) appealed to the Upper Tribunal regarding the first-Tier Tribunals decision to standard-rate supplies of construction services made by the business.  This decision was made on t.....
Read More
Julian Anthony Goodman appealed to the First-Tier Tribunal regarding HMRC's decision to refuse retrospective entry to the VAT Flat-Rate Scheme for small businesses. Mr. Goodman provided consultancy services in a self-emp.....
Read More
In response to the coronavirus pandemic, multiple EU countries have introduced temporary reductions in VAT rates.
Read More
After the UK leaves the EU, it has been confirmed that businesses will need to continue to submit Intrastat declarations to HM Revenue & Customs in relation of the movement of goods between the UK and the EU (and vice versa).
Read More
A VAT-registered company or sole trader may be liable to a financial penalty if they attempt to obtain a VAT credit or refund to which they are not entitled to by dishonest means. This was the case in Peter Arakiel Brook.....
Read More
The free use of goods-assets, or provision of goods-assets for free, has become common practice amongst EU businesses, however the VAT treatment is often problemtic. Such examples of this practice include when a sample o.....
Read More
During the most recent Budget, it was announced that VAT applied to certain e-publications was to be scrapped, with supplies of qualifying items to be liable to the zero rate of VAT from 1st December 2020 to reflect the VAT treatment of their physical counterparts. HMRC have announced that this change has been brought forward and is now effective from 1st May 2020. Up to this date, supplies of e-publications are liable to the standard rate of VAT.
Read More
Any business or sole trader who makes taxable supplies, the value of which exceeds the VAT registration threshold (currently £83,000), will be liable to register for VAT and charge output VAT on these supplies. However, .....
Read More
In the case of Phoenix Optical Technologies Limited (“Phoenixâ€) vs HMRC the two parties disputed whether the transfer of an asset as part of a financial settlement was a supply for VAT purposes.The case arose from a c.....
Read More
VAT is supposed to be a simple self-assessing tax, however for any business, getting VAT right represents a substantial and often onerous burden. This is particularly the case for any business or organisation that receives VAT exempt income as well as VATable income.
Read More
A recent First-tier Tribunal decision highlights how easy it can be to become involved in an expensive dispute with HMRC relating to the VAT treatment of supplies of services and the impact of applying for the wrong type.....
Read More
The VAT treatment of payments retained by businesses for supplies of goods and services that are not actually made to the customer is changing with effect from 1 March 2019. This will impact, amongst other areas, on sect.....
Read More
Our client registered for VAT a number of years ago, however, unfortunately due to issues with their book keeping system and a misunderstanding on how they should account for VAT no returns were filed. Instead the client.....
Read More
When Alternative Dispute Resolution (“ADRâ€) was first introduced many people were sceptical regarding the benefits given that this is a HMRC staffed and controlled offering. However, the problem is that the alternativ.....
Read More
Mr Smith, the Appellant in this instance, converted a barn adjoining his property into living accommodation for which planning permission was obtained. In 2007, when 60- of the work had been completed, Mr Smith became aw.....
Read More
Any business making taxable supplies where the resulting taxable turnover in any 12 month period exceeds the VAT registration threshold (currently £83,000) will be liable to register for UK VAT. In the case of Dean Jason.....
Read More
In the case of Substantia Invest Ltd, the appellant was a property developer who was appealing HMRC's decision to reject an input VAT reclaim upwards of £20,000. The costs in question related to legal services incurred f.....
Read More
HM Revenue and Customs (HMRC) have announced changes to trading in alcohol that are taking place from October 2015. Under the Finance Act 2015, businesses will need to apply to register for AWRS or be at risk of trading .....
Read More
Although not related to the Coronavirus pandemic, it is apt that a recent European Court of Justice case dealt with the VAT treatment of medical consultations held by phone. Specifically, a German company X-GmbH provided medical advice over the phone to those affected by long-term illnesses.
Read More
We are well aware that professional accountants and in house accounting staff at businesses, charities and other organisations need to maintain their professional development and ensure their VAT knowledge is up to date,.....
Read More
The deferral of VAT payments between 20 March – 30 June 2020 provides an opportunity for businesses who are liable to register for UK VAT but have not yet submitted the registration application. Any business who were to register for VAT and submit a first return with a payment due to HMRC between 20 March and 30 June would receive automatic time to pay until March 2021. This would only apply for payments due in the period.
Read More
HMRC have this week published a Revenue and Custom Brief regarding the VAT treatment of insurance repair services. Under normal circumstances, if an insured party makes a claim for damage to goods covered by their policy.....
Read More
The devil is always in the detail with VAT and simple errors of understanding or changes to planning permission can cost businesses dearly. In the case of DIY House Builders claims, or where clients or businesses are con.....
Read More
As the UK prepares to leave the European Union (EU) on 29th March 2019, all businesses are tasked with making essential plans for how they will carry out their operations after Brexit. The VAT People has the expertise re.....
Read More
A new anti-fraud measure is set to be introduced that will have a profound effect on business that make wholesale supplies of select electronic communications services such as the exchange of calls and data over landline.....
Read More
In the case of Corte Diletto UK Ltd, the Appellant argued that their product “Nouri Health Balls” qualified for zero-rating as a cake. HMRC disagreed and contended that the product should in fact be standard-rated as confectionary.
Read More
The European Commission have put forward a series of proposals with the intention to facilitate cross border trade as a whole and combat cases of VAT fraud in relation to these supplies.Included in these proposals are po.....
Read More
The reverse charge for construction and building services that was announced in the 2018 budget and due to come into force on 1 October 2019 has been delayed until 1 October 2020. This is a surprise move by HMRC as it came so late in the day, but it is to be welcomed given that many businesses are already struggling to cope with the potential impact of Brexit and MTD.
Read More
HMRC has decided not to proceed with proposals to extend the VAT education exemption to commercial providers of higher education and further education. This would have allowed commercial providers and other organisations.....
Read More
Cavendish Green Ltd appealed to the First-Tier Tribunal regarding HMRC's initial decision to disallow input VAT recovery in relation to a development site. The Appellant argued that, due to the construction of a boundary.....
Read More
Brockley's Rock, a fish and chip shop, appealed against HMRC's decision to assess the business for approximately £30,000 as well as imposing a penalty of roughly the same value on the basis that VAT had been underdeclare.....
Read More
Caligor RX Limited (“Caligorâ€) appeal against a default surcharge of approximately £35,000 issued by HMRC that was imposed due to the late payment of an amount due from the businesses VAT return whilst a surcharge per.....
Read More
In response to the Coronavirus pandemic, HMRC have announced the option for businesses to defer VAT payments due between 20 March 2020 and 30 June 2020 and as such, VAT due to HMRC from that period will now be due on or before the 31st March 2021.
Read More
As part of a business promotion scheme, Associated Newspapers Ltd (ANL) purchased retail vouchers from various popular retailers and provided these to customers who bought the newspaper throughout a promotional period. T.....
Read More
HMRC have issued a Brief to confirm the provisional VAT treatment of bitcoin and similar cryptocurrencies, which is as follows:  1.Income received from Bitcoin mining activities will generally be outside the scope of VAT.....
Read More
The proposed introduction of the domestic reverse charge for construction services, due to be implemented from 1st October 2020, has been delayed until 1st March 2021. The introduction of this legislation has already been pushed back from 1st October 2019. The intention of this further delay is to allow businesses time to overcome the challenges posed by coronavirus pandemic.
Read More
In accordance with Schedule 7A, Group 2 of the VAT Act 1994, the installation of certain energy saving materials within residential accommodation is liable to the reduced rate of VAT, as are the materials themselves when.....
Read More
Moulsdale Properties appealed a decision by the First-Tier Tribunal to uphold an option to tax on a property, resulting in its sale being taxable for VAT purposes. On appeal, the case was heard by the Upper Tribunal.
Read More
Input VAT incurred on the entertainment of employees, for example the provision of food, drink, accommodation or theatre-concert tickets is wholly recoverable if provided for the sole benefit of the businesses employees,.....
Read More
HMRC will issue an organisation with a Notice of Requirement and VAT Security when it believes a current or previous business has failed to meet its VAT obligations, or believes that such a risk is likely to arise in the future. If the notice is ignored, HMRC has the right to fine the organisation and prevent the supply of taxable goods until a security payment is made.
Read More
Value Added Tax (VAT) in the European Union (EU) is a general, broadly based consumption tax that is assessed on the value added to goods and services. It applies to all goods and services that are bought and sold for consumption in the EU.
Read More
Previously, for the purposes of the zero-rate and reduced rate VAT relief, HMRC have considered that a dwelling cannot be made up of more than one building. However a new brief published by HMRC has confirmed that it is .....
Read More
Making Tax Digital came into effect in April 2019 and digitises the entire VAT accounting process. Learn about how it works.
Read More
Fortyseven Park Street Limited appealed against HMRC's initial decision to treat supplies made to individuals in relation to the use of residential properties in London and the provision of related benefits as a standard.....
Read More
If your client or your business is based outside and sells goods stored in the UK to UK consumers through an on-line marketplace, the business will be required to register for VAT when it commences to trade in the UK (as overseas businesses to not have the benefit of waiting until their sales exceed the VAT registration threshold).
Read More
VAT is a particularly complex tax for the construction sector, with multiple VAT rates potentially applying to a property development. This makes it easy for a supplier to charge the wrong rate of VAT; also, the recipien.....
Read More
When it comes to land and property, VAT is a complex issue which gives rise to many interesting cases. One such case arose when DM & DD MacPherson appealed to the First-Tier Tribunal with regards to input VAT recovery on.....
Read More
HMRC has released a guide on how Bitcoins and other currencies can affect your VAT status, the key points you need to know
Read More
HMRC applies penalties to encourage taxpayers to comply with its rules regarding VAT payments. These are intended to serve as a sanction for those who do not comply, while reassuring the majority that they will not be disadvantaged by those who break the rules.
Read More
The VAT People can help businesses with all aspects of VAT, including output tax and input tax related issues. Here, we take a closer look at this concept and what it could mean for your business.
Read More
The construction of a new building is normally subject to VAT. However, zero-rate VAT may be granted if the construction is a qualifying building.
Read More
During the Coronavirus pandemic both The VAT People and The Customs People will be operating as usual – all consultants will be available by phone and by e-mail throughout usual business hours
Read More
Digital publications presently incur a VAT charge of 20% in the UK whereas printed publications has always been zero-rated for VAT purposes.
Read More
A recent tribunal decision has again highlighted the fact that practitioners in the field of skin care and related areas can only VAT exempt supplies that meet the criteria to be classed as a health care service that is intended to protect, restore or maintain an individual’s physical or mental health.
Read More
Converting a property can be an incredibly long-winded and difficult task, which can take months or even years to complete. And while the physical labour involved in developing property is usually considered, the costing and tax issues associated with this process can be overlooked, despite the fact that they are of equal importance.
Read More
The procedure to follow when challenging a VAT assessment or a decision regarding a VAT matter is not always correctly understood. As such, if you or your business are seeking a review of a VAT assessment, it is important to get the right advice on how the process works.
Read More

Latest Case Studies

Useful Information

Watch Our Videos

Get the vital information you need quickly and easily by watching one of our guidance videos - topics include VAT assessments and penalties, VAT for charities, and maximising VAT recovery.

View Videos