VAT - Input VAT (VAT on purchases)

Recently added Tips & Advice

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?
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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...
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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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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. ...
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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?
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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 - Input VAT (VAT on purchases)

Most read Tips & Advice

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?
Read more

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...
Read more

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. ...
Read more

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