Recently added Tips & Advice


Gift of property to spouse: the VAT consequences

You own a commercial property that you let to an unconnected business. This has an option to tax in place. You would like to transfer 50% of this to your spouse for income tax planning purposes. What VAT challenges does this create?
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OVERSEAS VAT - 07.07.2020

VAT on contracts involving three countries

One of our subscribers has a deal to provide management consultancy services to a retailer in Morocco. All work will be done in Morocco, but a separate business based in Spain will assist our subscriber. What are the VAT issues of this arrangement?
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VAT CASES - 07.07.2020

Truffle balls are standard-rated as confectionery

The case. Corte Diletto UK Ltd (CD) sold healthy truffle balls, which were originally marketed as “Nouri Truffles” and then became “Nouri Healthy Balls” . They are vegan based, gluten free and “healthy but indulgent” . They contain natural sugar but no added sugar and measured about 3cm across. CD claimed that the products should be zero-rated as a healthy fruit-based snack that could be a substitute for a dessert. The director also claimed that they met the definition of a zero-rated cake....
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VAT ERRORS - 07.07.2020

Avoiding an interest charge for past errors

You have discovered that your business has made supplies of management services for the last five years to an associated company but didn’t charge VAT. How do you correct this problem, and can you avoid an interest charge on the underpaid VAT?
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TAKEAWAY FOOD - 07.07.2020

What counts as “premises” for VAT?

Q. We run a café and sandwich bar in a shopping centre. Outside our café we have about ten chairs and four tables where customers can enjoy their food and drink. About 20 yards away there is another seating area, described as a “food court”, where customers from six different catering outlets can sit. This area is cleaned by the shopping centre and not any of the outlets. Is cold food consumed at both outlets zero-rated as takeaway sales? ...
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VAT GROUPS - 07.07.2020

Can we keep the VAT number?

Q. Our limited company trades as architects but we intend to form three limited companies for new activities that we think will be successful following the coronavirus crisis. The companies will all be subsidiaries of the main company and we want them to all be VAT registered from day one. Would it be possible to form a group registration, and could we keep our existing VAT number? ...
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Most read Tips & Advice

VAT - 08.06.2020

When is postage and packaging VATable?

The current crisis has forced our subscriber to find another way to sell her goods. She now sells her wine and food online, adding the cost of delivery to the price plus a little for her time and materials for packaging. Should she charge VAT on these?
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VAT - 13.05.2020

Partial exemption - improving your VAT recovery

As a partially exempt business the amount of VAT you can recover on purchases is restricted unless overridden by the de minimis rules. These can be applied in different ways, but which produces the best outcome?
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VAT - 28.05.2020

VAT charges for enticing a tenant

You own a commercial property but don’t have a tenant. To attract one you’re offering a financial inducement - a cash lump sum or a rent-free period. What’s the VAT position for you and the prospective tenant?
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