Recently added Tips & Advice


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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Can company split music business into two and deregister?

Q. My business trades as a limited company, selling musical instruments and giving piano lessons. All lessons are given by me, as I am the sole director and shareholder. The annual fees from lessons are £50,000 but the annual sales of instruments have fallen a lot since the pandemic to £70,000. The company is VAT registered but can I split my business into two legal entities, so that I can then deregister? ...
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WAREHOUSING - 26.03.2024

VAT charged on storage fees for overseas customer?

Q. Our business provides storage facilities in a UK warehouse, mainly to business customers who need to keep stock and assets there. We have agreed a long-term contract to store some goods for a French-based business, which is registered for VAT in France but not the UK. Do we charge VAT on our fees to this customer? ...
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Most read Tips & Advice

VAT - 18.03.2024

Leasing cars - what are the VAT pros and cons?

You’re considering leasing instead of purchasing cars for your business. This will improve cash flow and, according to the salesperson, allow you to reclaim VAT that you would not otherwise be entitled to. Are they correct?
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SELF-ASSESSMENT - 20.02.2024

Pressure builds on cryptoasset owners

A national firm of accountants says HMRC is stepping up investigations relating to cryptoassets. If you own Bitcoin assets, should you be worried?
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Simplifications for small businesses announced

Following a review of the impact of Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) on smaller businesses, a number of simplifications have been announced. What do these changes mean for your clients?
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