Running a business - VAT

Recently added Tips & Advice

VAT - 08.07.2024

Sale of old equipment - is it VATable?

Our subscriber sold a machine which he had used in his business before he was VAT registered. His accountant has told him that he should have charged VAT on the sale and that he must now account for it out of the proceeds. Is he correct?
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VAT CASES - 01.07.2024

Were directors liable to pay personal liability notice?

The case. Mr Johngir and Mr Babar were directors of two restaurants in Birmingham which traded from 2014 to 2018. The restaurants had combined covers for 250 people and employed 60-70 staff. HMRC issued a best judgement assessment in 2018 on the basis that sales had been deliberately suppressed and therefore output tax underdeclared. The company went into liquidation in July 2018. HMRC also issued a penalty for “deliberate but not concealed behaviour” in April 2019 and transferred 100% of the penalty to the two directors through a personal liability notice (PLN). ...
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VAT CASES - 01.07.2024

Was HMRC correct to terminate use of flat rate scheme?

The case. The use of the flat rate scheme (FRS) was one of many issues considered in this case about the operation of mini-umbrella companies (MUCs). HMRC took the decision to withdraw Elphysic Ltd (E) retrospectively from the scheme on the basis that it was for the“protection of the public revenue”. The officer also issued a retrospective assessment to calculate the VAT owed on the basis of traditional VAT accounting, i.e. output tax less input tax. ...
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ACCOMMODATION COSTS - 01.07.2024

Can we claim input tax on director’s accommodation costs after accident?

Q. One of our directors suffered a workplace accident, which resulted in a serious back injury, and he must now undergo a period of recovery that includes a six-week stay in respite accommodation where he will receive physiotherapy and other treatment. The provider will charge VAT on his food and accommodation costs. Can we claim input tax as a business expense? ...
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IMPORTS - 01.07.2024

Updated guidance for import VAT

If you use postponed VAT accounting (PVA), you must obtain the monthly VAT statements online. HMRC has updated its guidance relating to this. What’s the latest?
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VAT ASSESSMENTS - 01.07.2024

What can you do if your VAT assessment is excessive?

Your business has been issued with a “best judgement” assessment for understated output tax. You intend to challenge the figures because they are unreasonable but how should you do this?
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Running a business - VAT

Most read Tips & Advice

VAT - 17.04.2024

Avoiding the VAT registration cliff edge

Although the Chancellor announced an increase to the VAT registration limit in the Spring Budget 2024, it was relatively modest. As a service business if your turnover exceeds the new limit can you legitimately avoid having to register?
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VAT - 24.06.2024

Selling a holiday home - what about the VAT?

Our subscriber owns a cottage which he lets as holiday accommodation. He plans to redecorate, make minor improvements and then sell the property. Can he reclaim the VAT on these costs and, if so, how will it affect the VAT position when he sells?
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VAT - 12.06.2024

VAT reclaim failed due to missing information

A First-tier Tribunal (FTT) was asked to rule on a dispute between a company and HMRC relating to a VAT refund. Its decision turned on whether the documents that the company’s claim was based on were sufficient. What was the outcome?
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