What’s the right way to sort out the VAT if you sell goods or services with different VAT rates as a package or bundle?
VAT on property sales or rentals: the option to tax
In most cases, when property is sold or rented, no VAT changes hands and the supplier cannot recover VAT on associated expenditure. Where this poses a significant business issue, the option to tax is sometimes useful.
Vat return errors? What to do next
Time is always of the essence with VAT return errors. Put right anything that’s amiss as soon as it comes to light to keep out of the penalty regime.
New VAT rules for penalty and interest
For VAT accounting periods starting on or after 1 January 2023, it’s out with the old – the default surcharge regime – and in with a new penalty system designed to be fairer and more proportionate.
Important updates to HMRC’s VAT penalty systems
HMRC has introduced a new penalty regime for VAT periods which start on or after 1 January 2023. This includes new systems for late filing penalties and late payment penalties.
VAT: terminating a contract early
When someone charges a customer to withdraw from an agreement to supply goods or services, the position can be complicated. What is the position as regards VAT (never a set of tax rules to take lightly)? And why is it news now?
The temporary 5% VAT rate ends soon – are you ready?
Last summer, Chancellor Rishi Sunak introduced a temporary 5% VAT rate as part of a package of measures to support the hard-hit hospitality and tourism sector. As trade slowly starts to return to normal, VAT will increase to 12.5% from 1 October before reverting to the usual 20% next April. If you’ve not already done so, you should prepare for the change now.
New rules for Construction companies now apply
Two major changes for Construction companies – designed to tackle VAT fraud and abuse of the CIS scheme rules – have now come into effect.
VAT deferral new payment scheme opens 23 February
You now have the option to spread your repayments of VAT deferred from summer 2020. The new VAT deferral payment scheme will be open from 23 February 2021 to 21 June 2021. However, HMRC has advised that tax advisors will not be able to use this system on behalf of their clients.
Tax deadlines and cashflow – help for individuals and businesses
The government has made some changes to help individuals and business who are struggling to meet the usual tax deadlines.
VAT reverse charge – new accounting rules for builders from 1 March
After two changes of deadline, the new VAT accounting procedures (known as the VAT reverse charge) for builders will be introduced on 1 March 2021. Here we explain the changes and what they may mean for your construction business.
Tax Investigation Service – protect against the costs of an HMRC enquiry
There are many reasons why you might be selected for a visit from HMRC, including simple bad luck. While you may not be able to avoid a visit from the taxman – you can avoid the cost of professional fees incurred over the course of an HMRC tax investigation.*
VAT and food retail: What’s ‘hot’ and what’s not?
When it comes to VAT, it is always important to get the classification right for the supply of goods or services. Crossing the boundaries separating standard and zero-rated items in food retailing can lead to problems. The outcome of a recent tribunal hinged on the question of whether takeaway food supplied by a business was ‘hot’ – or not.
Have you activated your HMRC Business Tax Account?
Taxpayers can already use their online Business Tax Account for their dealings with HMRC but it is not currently essential. This is set to change with Making Tax Digital.
Will Making Tax Digital apply to your business?
From 1 April 2019, certain businesses will be required to comply with the government’s new Making Tax Digital (MTD) regime. MTD represents a significant change to the way taxpayers keep their accounting records and submit information to HMRC. Will you be affected? And what should you do to be compliant?
