VAT - Returns, forms & HMRC admin

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VAT - 21.10.2020

Countdown to new VAT rules

HMRC has published new guidance on what steps your business may need to take from 1 March 2021 if it supplies or receives building or construction services. How should you use the guidance?
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VAT - 08.10.2020

Pre-credibility checks

Over the past few months we have seen letters from HMRC across all taxes that ongoing enquiries will be suspended during the coronavirus pandemic. Having done a little digging, it appears that HMRC has deployed additional resources into conducting pre-credibility checks, namely from teams that would normally be conducting general compliance checks....
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VAT INVOICES - 01.10.2020

Can we accept a supplier’s VAT-only invoice?

Q. We run a building business. One of our subcontractors decided to deregister from VAT three years ago and has now invoiced us during that period without adding VAT. It has now come to light that his accountant has never notified HMRC, so he has been registered during that period of time. He has now issued us with a VAT-only invoice for work done for the last three years, but shouldn’t his accountant have asked to backdate the deregistration date instead? ...
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VAT CASES - 01.10.2020

Payment date was in the future - invoice was not “unpaid”

The case. The taxpayer Premspec Group (PG) was formed in 2012 to distribute electrical goods to wholesalers. There were two other companies under the same ownership, which had a long trading history and therefore better cash flow. The issue was whether PG had to reduce its original input tax claim on purchase invoices received from the sister companies after July 2013 because they remained unpaid after six months, i.e. the rules surrounding bad debt relief were in point. The taxpayer claimed that they were not payable for ten years until July 2023 based on a credit agreement between the directors....
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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?
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VAT - 03.09.2020

Did you remember to reinstate your VAT DD?

To provide government support during the early stages and peak of the pandemic, HMRC gave businesses the option to defer VAT payments without incurring late payment interest or penalties. Under the scheme, payment of VAT due between 20 March and 30 June 2020 could be deferred until 31 March 2021....
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VAT - Returns, forms & HMRC admin

Most read Tips & Advice

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?
Read more

OUTPUT TAX - 27.08.2020

Can I raise sales invoices in foreign currency?

Q. One of our customers has asked us to raise our sales invoices in euros, which we are happy to do in principle. But are there any specific VAT requirements that we need to be aware of? A. If you issue invoices in foreign currency for supplies of goods or services that take place in the UK, you must convert the total amount of VAT payable into sterling. You must use the rate of exchange that applies at the time of supply. HMRC confirms that you can use any daily rate published in a national newspaper, although the best option is to use HMRC’s own exchange rates, published on its website (see The next step ). This information is published at the beginning of each calendar month and the rate applies for the whole month. Tip. Whichever published rate you use ensure you print a copy of the information and keep it filed with the invoice. ...
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VAT INVOICES - 01.10.2020

Can we accept a supplier’s VAT-only invoice?

Q. We run a building business. One of our subcontractors decided to deregister from VAT three years ago and has now invoiced us during that period without adding VAT. It has now come to light that his accountant has never notified HMRC, so he has been registered during that period of time. He has now issued us with a VAT-only invoice for work done for the last three years, but shouldn’t his accountant have asked to backdate the deregistration date instead? ...
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