VAT - Special schemes

Recently added Tips & Advice

FLAT RATE SCHEME - 26.03.2024

Is FRS tax calculated on gross or net holiday let income

A subscriber rents out three holiday homes. They use the flat rate scheme (FRS) but have calculated tax based on the net commission received from their online booking agency. Have they made errors and, if so, how should they correct them?
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VAT - 05.03.2024

VAT and customer incentive schemes

You want to set up a loyalty scheme for your customers but haven’t settled on exactly what it will be. You especially want to avoid tricky VAT issues. What are your options?
Read more

VAT CASES - 28.02.2024

Should VAT on ride-hailing service be based on profit margin?

The case. Bolt Services UK Ltd (B) provides passenger transport services in private hire vehicles (PHVs) to travellers via its smartphone app. In October 2022, the company asked HMRC to confirm that its services qualified as a tour operators margin scheme (TOMS) supply, i.e. output tax was only payable on the profit margin for a deal. HMRC replied by saying that output tax was payable on the full amount paid by the traveller because B was not a tour operator or travel agent. The PHV owners were all in business on their own account and were able to accept or decline jobs offered to them. ...
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VAT CASES - 31.10.2023

Was HMRC correct to withdraw retailer from flat rate scheme?

The case. Pierre Divisia (PD) was an Amazon seller based in France. As some stock was stored in a UK warehouse and sold from there, the business registered for UK VAT in February 2018. PD also applied to join the flat rate scheme (FRS), and the request was accepted by HMRC. However, HMRC retrospectively cancelled PD’s use of the FRS in September 2020 and issued an output tax assessment for £7,612, covering April 2018 to April 2020. ...
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VAT - 03.10.2023

When should you use a VAT margin scheme?

The basic ins and outs of VAT are simple. You can reclaim VAT you pay on goods or services you buy for your business and charge your customer VAT when you sell them. But how should you handle VAT where you buy or sell second-hand goods?
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FLAT RATE SCHEME - 27.06.2023

Are you a limited cost trader?

Your business is a long-term user of the flat rate scheme and it saves you tax compared to normal VAT accounting. But have you correctly checked to ensure you are not a limited cost trader in some periods, with its punishing rate of 16.5%?
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VAT - Special schemes

Most read Tips & Advice

VAT - 05.03.2024

VAT and customer incentive schemes

You want to set up a loyalty scheme for your customers but haven’t settled on exactly what it will be. You especially want to avoid tricky VAT issues. What are your options?
Read more

FLAT RATE SCHEME - 26.03.2024

Is FRS tax calculated on gross or net holiday let income

A subscriber rents out three holiday homes. They use the flat rate scheme (FRS) but have calculated tax based on the net commission received from their online booking agency. Have they made errors and, if so, how should they correct them?
Read more

VAT CASES - 28.02.2024

Should VAT on ride-hailing service be based on profit margin?

The case. Bolt Services UK Ltd (B) provides passenger transport services in private hire vehicles (PHVs) to travellers via its smartphone app. In October 2022, the company asked HMRC to confirm that its services qualified as a tour operators margin scheme (TOMS) supply, i.e. output tax was only payable on the profit margin for a deal. HMRC replied by saying that output tax was payable on the full amount paid by the traveller because B was not a tour operator or travel agent. The PHV owners were all in business on their own account and were able to accept or decline jobs offered to them. ...
Read more

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