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 - 03.04.2024
Practical tips for partial exemption
As your business is partially exempt for VAT purposes it’s required to make fiddly adjustments to its bookkeeping records when preparing VAT returns. How can you simplify these to save time and effort?
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CONNECTED PARTIES - 26.03.2024
Family loyalty: is your generosity causing a VAT problem?
A close relative has set up a new business that is not VAT registered. To help, you have agreed to pay their supplier of advertising services all costs for one year and claim input tax on your own returns. Has your generosity created a connected party problem?
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INVOICES - 26.03.2024
Do you always need to issue a VAT invoice?
Your business is making more low value sales to a wider range of customers following a change in your business model and trading activities. What sales can you make without issuing a tax invoice and what must you do instead?
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PROPERTY - 26.03.2024
VAT on variation and surrender fees?
You no longer need to occupy all floors of the building that you are renting. You are discussing several options to reduce your rental costs, including paying a variation fee to change the terms of the lease, but what are the VAT issues to consider?
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VAT CASES - 26.03.2024
Partial exemption: was square footage method accurate?
The case. Hippodrome Casino Ltd (H) had exempt income from gaming activities and VATable sales generated by eight bars and restaurants on its trading premises. H argued that apportioning input tax on mixed costs and overheads by using the partial exemption standard method based on splits between exempt/taxable sales was distortive, so used a method instead based on square footage splits in the building, i.e. the gaming areas were exempt and hospitality areas were taxable. HMRC disputed its accuracy on the basis that the hospitality areas had a dual use because they were also used to give free food and drink to the gaming customers, i.e. the area was not wholly linked to taxable sales. ...
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