VAT
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
What Is Group VAT Registration? Group VAT registration allows businesses with multiple companies to register under one VAT number rather than filing separate VAT returns. This...
VAT on Craft Fairs: What Stallholders Need to Know
Understanding VAT on Craft Fair Stalls Participating in a craft fair is a great opportunity for small businesses, but many stallholders may not realise the VAT implications....
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
Deposits, VAT, and Supplier Liquidation When a business pays a deposit for goods or services, a VAT point is usually created, meaning VAT must be accounted for at that stage....
Fishy VAT Ruling
The Fishy VAT Argument A taxpayer recently attempted to challenge HMRC’s VAT treatment of fishing day tickets, arguing that the service constituted a mixed supply. The...
Pre-registration VAT on depreciating assets
HMRC currently expect you to make an adjustment for deprecation if you register for VAT and have an asset which has been used to make supplies pre-registration. However the...
Second hand schemes and VAT
Businesses selling second-hand goods, antiques, or works of art may benefit from a second-hand VAT scheme. Instead of paying VAT on the full selling price, they only account...
Spot the ball – exempt or taxable (for VAT)
Spot the Ball and VAT: The Court Ruling A recent Court of Appeal ruling has confirmed that Spot the Ball competitions qualify as a game of chance, making them exempt from VAT....
Transfer of a going concern (VAT)
If a business is transferred from one type of legal entity to another the turnover of the old legal entity must be taken into account when determining whether VAT registration...