TERMINATION FEES - 01.10.2020
HMRC confirms new policy is retrospective
Your business might charge customers a penalty or termination fee if they cancel an agreement or contract early. HMRC has recently changed its policy on the VAT liability of these payments. What does this mean for you?
ONLINE PLATFORM SALES - 01.10.2020
Accounting for VAT on sales made through online platforms
If you trade online via electronic marketplaces, it is likely that the platform will handle the sale on your behalf and send you a statement along with any payments due. But are you dealing with the VAT correctly?
VAT - 08.09.2020
Subcontractors - a VAT trap
The First-tier Tribunal (FTT) recently considered the VAT position of a business which used subcontractors to carry out its work. HMRC claimed the business was responsible for VAT on the subcontractors’ services. What was the FTT’s decision?
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? ...
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?
CORONAVIRUS - GRANT INCOME - 01.06.2020
Are your coronavirus grants subject to VAT?
Many businesses have qualified for a special grant, often from their local authority, due to the implications of coronavirus on their trading income. But is there a possible VAT trap with these and other grants that you must consider?