VAT - Returns, forms & HMRC admin

Recently added Tips & Advice

VAT ERRORS - 07.07.2020

Avoiding an interest charge for past errors

You have discovered that your business has made supplies of management services for the last five years to an associated company but didn’t charge VAT. How do you correct this problem, and can you avoid an interest charge on the underpaid VAT?
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VAT GROUPS - 07.07.2020

Can we keep the VAT number?

Q. Our limited company trades as architects but we intend to form three limited companies for new activities that we think will be successful following the coronavirus crisis. The companies will all be subsidiaries of the main company and we want them to all be VAT registered from day one. Would it be possible to form a group registration, and could we keep our existing VAT number? ...
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CORONAVIRUS - REMOTE WORKING - 07.07.2020

Reclaiming VAT on remote working allowance for staff

The coronavirus crisis has identified certain employees that can work from home in the long term. You have agreed to give them up to £1,000 to pay for equipment and other homeworking costs. Can you reclaim any input tax?
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VAT CASES - 07.07.2020

No link between production costs and catering supplies

The case. This appeal in the Upper Tribunal (UT) was made by HMRC against the decision of the First-tier Tribunal (FTT) that input tax incurred on production costs by the Royal Opera House (ROH) had a “direct and immediate link” with sales of food, drink and ice creams made during performances as far as partial exemption was concerned. The link with taxable catering supplies increased the input tax claimed by ROH. The production costs related to costumes, conductor and performer fees, and so on. ...
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CORONAVIRUS - VAT - 22.06.2020

Do we have to pay back the VAT?

Q. Our company paid for services and materials for a project on which we would have charged the customer VAT. It has since been abandoned because of coronavirus. Will we have to repay HMRC the VAT that we reclaimed on these costs? A. The general rule is that VAT can only be reclaimed on purchases which lead to sales on which VAT will be charged. However, as far as the VAT on the services is concerned you won’t have to repay the VAT you’ve reclaimed. You don’t say what the services were but it’s unlikely they can be applied to a new project. That being the case, the original reason for incurring the cost stands despite the project being abandoned. The position for the VAT you reclaimed on the materials might be different. If they are unused and eventually scrapped then, like the VAT on the services, it’s the original intention for the purchase that matters. If, however, the materials are used to make an exempt supply you must repay the VAT you’ve reclaimed. ...
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VAT - 04.06.2020

With VAT or without VAT... that is the question!

Common VAT query. In May 2020 the Advertising Standards Authority (ASA) advised that one of the most common queries (and complaints) it receives is the correct use of VAT-inclusive and VAT-exclusive prices in advertising. The CAP Code - which the ASA enforces - has strict rules on pricing which apply to all advertising and marketing materials. This includes on websites and social media profiles. The ASA is encouraging businesses to follow its best practice advice which explains how prices should be displayed in business ads (see The next step ). ...
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VAT - Returns, forms & HMRC admin

Most read Tips & Advice

CORONAVIRUS - REMOTE WORKING - 07.07.2020

Reclaiming VAT on remote working allowance for staff

The coronavirus crisis has identified certain employees that can work from home in the long term. You have agreed to give them up to £1,000 to pay for equipment and other homeworking costs. Can you reclaim any input tax?
Read more

CORONAVIRUS - VAT - 22.06.2020

Do we have to pay back the VAT?

Q. Our company paid for services and materials for a project on which we would have charged the customer VAT. It has since been abandoned because of coronavirus. Will we have to repay HMRC the VAT that we reclaimed on these costs? A. The general rule is that VAT can only be reclaimed on purchases which lead to sales on which VAT will be charged. However, as far as the VAT on the services is concerned you won’t have to repay the VAT you’ve reclaimed. You don’t say what the services were but it’s unlikely they can be applied to a new project. That being the case, the original reason for incurring the cost stands despite the project being abandoned. The position for the VAT you reclaimed on the materials might be different. If they are unused and eventually scrapped then, like the VAT on the services, it’s the original intention for the purchase that matters. If, however, the materials are used to make an exempt supply you must repay the VAT you’ve reclaimed. ...
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CORONAVIRUS - VAT ACCOUNTING - 01.06.2020

Coronavirus cash flow tips to help your working capital

Your business submits all VAT returns and pays tax on time to ensure it doesn’t incur default surcharges. But is there scope to delay paying some output tax until the next quarter’s return by not raising sales invoices until your customers pay?
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