VAT
Changes coming for sales made to EU member countries
EC SALES LISTS From 1 January 2021 sales of services made to EU VAT registered businesses will no longer be reported on an EC Sales List. Any sales made to EU VAT registered...
COVID-19 VAT Deferral
The Government’s VAT deferral scheme was very welcome and likely needed for many businesses. In brief, the scheme allows for a temporary change to the VAT payments due between...
Implementation of VAT Reverse Charge mechanism for UK construction services delayed until 1 October 2020
Implementation of the VAT Reverse Charge mechanism for UK construction services has been delayed until 1 October 2020. What is this? A planned change to VAT procedures...
Making Tax Digital update – VAT first up
The government recently indicated that they are still fully committed to their plans to operate a digital tax system. From April 2019, when submitting quarterly VAT returns,...
Plans to Digitalise tax have been put back
The Government have announced significant changes to the (making Tax Digital) MTD timetable, effectively deferring MTD until at least 2020, although digital records will need...
Understanding the VAT Registration Threshold in 2025
As of 1 April 2024, the VAT registration threshold in the UK increased to £90,000. This means that if a business’s taxable turnover exceeds £90,000 in any rolling 12-month...
Assessing VAT errors
Unless HMRC can prove dishonest declarations they cannot assess for VAT errors more than four years after the end of the prescribed accounting period. So if an error is...
Reclaiming VAT on house extension
There are two ways to account for private use of a business asset. If it is not a capital item you can claim all the input tax and then pay VAT on the value of the private...
VAT and conversion services
HMRC's Policy Change on VAT for Dwellings Formed from Multiple Buildings In a significant policy shift, HM Revenue and Customs (HMRC) now accepts that a single dwelling can be...
Late VAT claims – all is not lost!
Normally VAT should be reclaimed in the VAT period in which it is incurred. If not then you need to make an error correction but if the net adjustment for all ‘errors’ is less...
VAT – Zero or 5% VAT for building works?
Following the introduction of Permitted Development Rights HMRC has clarified its policy concerning the VAT treatment of works where an individual planning application is not...
Reasonable Excuse for VAT Default Surcharge
Understanding Reasonable Excuse for VAT Default Surcharge Navigating VAT obligations can be challenging, and occasionally, businesses may miss payment deadlines. In such...