VAT - Returns, forms & HMRC admin

Recently added Tips & Advice

INVOICES - 26.03.2024

Do you always need to issue a VAT invoice?

Your business is making more low value sales to a wider range of customers following a change in your business model and trading activities. What sales can you make without issuing a tax invoice and what must you do instead?
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VAT CASES - 26.03.2024

Partial exemption: was square footage method accurate?

The case. Hippodrome Casino Ltd (H) had exempt income from gaming activities and VATable sales generated by eight bars and restaurants on its trading premises. H argued that apportioning input tax on mixed costs and overheads by using the partial exemption standard method based on splits between exempt/taxable sales was distortive, so used a method instead based on square footage splits in the building, i.e. the gaming areas were exempt and hospitality areas were taxable. HMRC disputed its accuracy on the basis that the hospitality areas had a dual use because they were also used to give free food and drink to the gaming customers, i.e. the area was not wholly linked to taxable sales. ...
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HMRC - 26.03.2024

VAT helpline services slashed

A shortage of staff and more tax-paying customers with complex issues mean that HMRC is struggling to cope. How could it affect your business?
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VAT CASES - 26.03.2024

Did conversion of commercial vehicles into cars create VAT charge?

The case. Three Shires Trailers Ltd (T) purchased two Land Rover Discovery vehicles in August 2021 and claimed input tax on its return on the basis that they were commercial vehicles used for business purposes. HMRC reviewed the return and discovered that T had subsequently inserted three fold-up seats with seat belts behind the passenger and driver seats and had also cleared the side and back windows. The conversion meant that T could transport more staff to trade shows. HMRC charged output tax of £22,497 on the basis that the conversion from a commercial vehicle to a car meant that a self-supply had taken place. ...
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RECORD KEEPING - 28.02.2024

How long do you need to keep VAT records?

The legislation states that you only need to correct errors made on your returns for the last four years, so can you destroy your accounting records and invoices that are more than four years old? And how could you save on storage costs?
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VAT CASES - 28.02.2024

Could company rely on “legitimate expectation” principle?

The case. Fatima Jewellers Ltd (F) exports gold to Dubai to be made into jewellery, and it is then reimported into the UK after work has been completed. VAT and import duty are only payable on the processing cost in such cases rather than the full value of the jewellery. However, HMRC claimed that the company had not complied with the necessary conditions for temporary export relief and issued a VAT assessment for £1.24m and import duty of £151,427 based on the full value. F claimed that it had received letters from HMRC in 2014 saying that it did not need to apply for outward processing relief, which meant it would only be subject to VAT and duty on the processing value rather than finished goods. ...
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VAT - Returns, forms & HMRC admin

Most read Tips & Advice

MAKING TAX DIGITAL - 23.01.2024

Simplifications for small businesses announced

Following a review of the impact of Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) on smaller businesses, a number of simplifications have been announced. What do these changes mean for your clients?
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RECORD KEEPING - 28.02.2024

How long do you need to keep VAT records?

The legislation states that you only need to correct errors made on your returns for the last four years, so can you destroy your accounting records and invoices that are more than four years old? And how could you save on storage costs?
Read more

ELECTRIC VEHICLES - 29.01.2024

EV charging: VAT position clarified

HMRC has amended its published guidance to remove any doubt about the rate of VAT that applies to electric vehicle charging at public points. What does this mean for your business?
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