INPUT TAX - 30.11.2023
Can we claim input tax on gym membership scheme?
Q. As part of our strategy to improve the health and fitness of our staff, we have signed a twelve-month contract with a local gym for corporate membership. The gym is VAT registered but can we claim input tax on the fee? A. If a sporting or recreational facility is provided to all employees - which is clearly the case with a corporate membership scheme - then input tax can be claimed on the expense without output tax being payable on the benefit provided. The expense is deemed to be for the business purpose of rewarding and motivating your staff. ...
VAT - 29.11.2023
Overclaimed VAT - is it always repayable to HMRC?
Our subscriber made purchases from a supplier and reclaimed the VAT charged on their invoices. The supplier has subsequently gone under and apparently was never registered for VAT. Must the VAT our subscriber reclaimed be repaid to HMRC?
HOSPITALITY - 31.10.2023
Can we claim VAT on restaurant bill?
Q. We organised an expensive dinner at a restaurant for our self-employed sales representatives and charged each delegate for their meal at cost price, adding 20% VAT to the invoice and accounting for output tax. My bookkeeper says that we cannot claim input tax on the food and drink invoice we received from the restaurant because we have entertained non-employees and are therefore blocked from making a claim. Is this correct? ...
VAT - 17.10.2023
Reclaiming VAT incurred in an EU country
If you buy goods or services from an EU country that you import for use in your UK business, you must usually deal with the VAT ins and outs through your quarterly returns. But what about VAT paid on purchases made while in an EU country?
VAT CASES - 29.09.2023
Did farming show qualify for exemption as fundraising event?
The case. The Great Yorkshire Show is an annual event and forms an important part of the charitable objectives of the Yorkshire Agricultural Society (YAS), which is a registered charity. The Show has two main purposes: to raise funds for the YAS and to serve as an educational event about the latest developments in farming. The YAS claimed that admission fees paid by up to 35,000 daily attendees qualified for exemption as a fundraising event organised by a charity. HMRC disagreed. ...
GIFTS - 29.09.2023
VAT due on gift to top-performing employee?
Q. Our business trades as a car dealership and we have given a case of champagne to our best-performing salesperson. As we understand it, we can claim input tax on the cost of the champagne because each individual bottle cost us less than £50. Is this correct? A. Unfortunately, your interpretation of the law is incorrect. Firstly, you can claim input tax on the purchase of the champagne because it is an expense that relates to your business; the purpose of the expense is to reward an employee who has performed exceptionally well. This assumes that you have a tax invoice and the supplier is registered for VAT. ...