Tax - VAT

Recently added Tips & Advice

VAT - 21.10.2020

Tax-free shopping to end

No more refunds. At the end of September the government announced the end of the VAT Retail Export Scheme (VAT RES) with effect from 1 January 2021. This means that overseas visitors will no longer be entitled to a VAT refund on items they buy in England, Scotland or Wales which they take home in their luggage. The decision was made after a public consultation which addressed several key questions regarding VAT RES (see The next step ). However, the change doesn’t mean the end of VAT-free sales. ...
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VAT - 21.10.2020

VAT traps with inter-company management charges

Two businesses share costs, e.g. staff salaries and premises, but the expenses are paid by one. This arrangement it not unusual but it can create VAT problems for the businesses concerned. What are they and how can you avoid them?
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VAT - 21.10.2020

Countdown to new VAT rules

HMRC has published new guidance on what steps your business may need to take from 1 March 2021 if it supplies or receives building or construction services. How should you use the guidance?
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VAT - 19.10.2020

Takeaway and delivered food - get the VAT right

A temporary lower VAT rate currently applies to some supplies of food and drink but not others. While this is good news it’s caused some confusion. What VAT should you be charging your customers?
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VAT - 08.10.2020

Pre-credibility checks

Over the past few months we have seen letters from HMRC across all taxes that ongoing enquiries will be suspended during the coronavirus pandemic. Having done a little digging, it appears that HMRC has deployed additional resources into conducting pre-credibility checks, namely from teams that would normally be conducting general compliance checks....
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TERMINATION FEES - 01.10.2020

HMRC confirms new policy is retrospective

Your business might charge customers a penalty or termination fee if they cancel an agreement or contract early. HMRC has recently changed its policy on the VAT liability of these payments. What does this mean for you?
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Tax - VAT

Most read Tips & Advice

VAT - 08.09.2020

Subcontractors - a VAT trap

The First-tier Tribunal (FTT) recently considered the VAT position of a business which used subcontractors to carry out its work. HMRC claimed the business was responsible for VAT on the subcontractors’ services. What was the FTT’s decision?
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VAT - 22.09.2020

HMRC bombshell on compensation payments

In one of its recent Business Briefs HMRC announced a reversal in its approach to compensation payments involving termination of contracts. More significantly it is applying the change retrospectively. How might this affect your business?
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OUTPUT TAX - 27.08.2020

Can I raise sales invoices in foreign currency?

Q. One of our customers has asked us to raise our sales invoices in euros, which we are happy to do in principle. But are there any specific VAT requirements that we need to be aware of? A. If you issue invoices in foreign currency for supplies of goods or services that take place in the UK, you must convert the total amount of VAT payable into sterling. You must use the rate of exchange that applies at the time of supply. HMRC confirms that you can use any daily rate published in a national newspaper, although the best option is to use HMRC’s own exchange rates, published on its website (see The next step ). This information is published at the beginning of each calendar month and the rate applies for the whole month. Tip. Whichever published rate you use ensure you print a copy of the information and keep it filed with the invoice. ...
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