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. ...
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?
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%?
FLAT RATE SCHEME - 03.05.2023
Am I using the right FRS rate?
Q. I trade as a health and safety consultant and I have used the flat rate scheme for many years because it means I do not have to keep input tax records. I have always used the category for management consultancy and paid 14.5% VAT on my gross sales. But I wonder if this category is correct because I am not trading as a management consultant. Should I ask HMRC for its thoughts? ...
CASH ACCOUNTING - 04.04.2023
Join cash accounting despite high sales?
Your business would like to join the cash accounting scheme (CAS) to help VAT cash flow but you think that you are ineligible because your annual sales exceed the joining threshold. But are you missing some tricks with the joining rules?
CAPITAL GOODS SCHEME - 27.02.2023
VAT recovery and the capital goods scheme
One of our subscribers is the treasurer of their local golf club. The club plans to spend £500,000 plus VAT on major improvement works to its clubhouse. How much input tax can it claim and how will the capital goods scheme affect the calculations?