VAT - 08.07.2024
Sale of old equipment - is it VATable?
Our subscriber sold a machine which he had used in his business before he was VAT registered. His accountant has told him that he should have charged VAT on the sale and that he must now account for it out of the proceeds. Is he correct?
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DEPOSITS - 01.07.2024
Should we declare VAT on refundable deposits?
Q. Our business hires out equipment to builders and civil engineers and we use the cash accounting scheme for our VAT returns, accounting for output tax and claiming input tax according to payment rather than invoice dates. Some customers pay us a security deposit at the time of a hire, which is refunded to them if they return the equipment undamaged and in good condition. We have always accounted for output tax on our returns with these deposits because we use the cash accounting scheme but we claim it back as an output tax credit when the customer is refunded. Is this correct? ...
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PROMOTIONS - 04.06.2024
How to account for VAT on customer vouchers?
Your business will sell vouchers to customers that can be redeemed in the future against goods or services that you sell. How do you account for VAT on these vouchers to avoid a problem with HMRC?
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VAT CASES - 04.06.2024
Did restaurant deliberately suppress cash sales?
The case. Cheon Fat Ltd (C) operated a Chinese restaurant between 2012 and 2018, offering both an a la carte menu and an unlimited buffet option. HMRC issued assessments totalling £136,709 for suppressed cash sales plus a further penalty of £53,715 for the director’s behaviour being “deliberate not concealed”. HMRC’s assessment was based on the results of five test purchases carried out by officers in April and May 2016 and two later visits to check the cashing-up procedures just before closing time. HMRC’s assessment was based on the expected ratio of cash to credit card sales, based on the percentage established at the cashing-up visits, using information received from Worldpay about credit card sales. ...
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PERFORMANCE SERVICES - 04.06.2024
What’s a performance service and when is the tax point?
A subscriber provides face-to-face educational and training services in both the UK and abroad. They have heard about special VAT rules for “performance services”. What are these services and how do they affect our subscriber?
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VAT - 21.05.2024
Selling services online: help clients get the VAT right
Most UK businesses sell services rather than goods, which have various VAT challenges when sold online, particularly if three parties are involved in a deal. How should your clients account for the VAT correctly?
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