ENTERTAINMENT - 01.10.2020
Maximising the savings of the temporary 5% VAT rate
Many supplies made in the tourism and hospitality sector have had their VAT rate cut to 5% until 12 January 2021. How can you use the tax point rules to extend the benefits beyond that date to benefit your partially exempt business?
VAT CASES - 01.10.2020
Input tax could not be claimed on costs of an awards ceremony
The case. The Aitmatov Academy (AA) makes taxable supplies of translating and interpretation services, linked to the literary industry. It organised an awards ceremony at the House of Lords and claimed input tax of £1,299 on its March 2018 VAT return in relation to costs. HMRC...
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?
VAT CASES - 27.08.2020
Legal fees had no business link, so VAT reclaim was denied
The case. HMRC issued personal liability notices (PLNs) against the taxpayer (PM) in respect of civil evasion, and dishonest behaviour penalties relevant to two overseas companies that he was allegedly involved with as a shadow director. The companies failed to register and pay VAT on imported goods subject to excise duty. The penalties exceeded £34 million and a freezing injunction was in place on his personal assets for £22.75 million. The disputed issue was whether input tax could be claimed by PM’s VAT-registered sole trader business (a property-owning entity) in respect of legal fees incurred between March and November 2017. ...
VAT - 22.06.2020
How to make a successful late VAT claim
Your bookkeeper has found a batch of purchase invoices on which VAT hasn’t been reclaimed. They date back a few years and you think that it may be too late to reclaim the VAT. What is and isn’t allowed?
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?