VAT
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
Dwellings formed from more than one building HMRC now accept that single dwellings can be formed from more than one building. Prior to this HMRC had considered that while a...
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 – VAT
It can sometimes be worthwhile appealing to the First Tribunal... A taxpayer had been late three times paying his VAT and HMRC imposed a default surcharge. He appealed...
Changes to the VAT flat rate scheme from 1 April 2017
HMRC believes that small businesses have been abusing the VAT flat rate scheme (FRS). When reporting VAT payable the business ignores VAT on purchases with the exception of...
VAT surcharges
Ignore at your peril the receipt of a surcharge liability notice (SLN) or a letter of help issued to small businesses with a turnover of £150,000 who miss a deadline. What...
VAT and second hand car schemes
You will need to fill in a VAT return at the end of each tax period. Here are the special rules you must follow for any vehicles which you have bought or sold under the Margin...
Group VAT registration
These can be quite useful, particularly if there are lots of sales between group members as it removes the need for VAT to be charged. If a taxpayer is deregistered under its...
VAT on craft fairs
Where a stall holder gains the right to participate as a seller in a high quality, well organised craft fair of which only one element is the pitch then the supply is taxable...
VAT recovery on cars
If you are a taxi driver, car hire business or driving school, or buying a car for resale you can claim back the VAT (if VAT registered and making taxable supplies). But what...
Deposits and liquidation – caveat emptor when it comes to VAT
If a deposit is paid and a VAT point created, if the goods are never supplied because for example the supplier goes into liquidation, the VAT cannot be recovered as there has...