BUILDING WORK - 31.10.2023
Can you charge 5% VAT if owner has moved in?
Your building services will qualify for 5% VAT if a residential property has not been lived in for at least two years. But in what situations can you still charge 5% if the owner moves in before you start work?
RECHARGES - 29.09.2023
VAT on zero-rated expenses recharged to customers?
A subscriber trades as a consultant and a customer has asked why VAT has been charged on rail and air travel costs recharged on their sales invoices. The customer has asked for a VAT credit because they are a zero-rated disbursement. Are they correct?
FUNDRAISING - 31.08.2023
Is fundraising income exempt from VAT?
You’re the treasurer of a not-for-profit organisation which is registered for VAT and it needs to raise funds to buy some new equipment. You’ve decided to organise a fundraising event. What should you do about VAT to maximise your surplus?
VAT CASES - 27.06.2023
Were turmeric shots classed as “food” or a “beverage”?
The case. Innate-Essence Ltd (I) was formed by a professional footballer and his father, trading as The Turmeric Co. Four different brands of 60ml shots are sold by the company, including Raw Turmeric and Beetroot. The products are sourced from farms in Peru. The turmeric roots are hand-prepared, crushed and pumped to extract liquid. I claimed that the shots were intended to give health benefits, providing “natural, raw nutrition to support and aid optimum health”, so qualified as zero-rated food. HMRC claimed that they were beverages that were consumed to “fortify and give pleasure” , and should be standard-rated. ...
VAT CASES - 27.06.2023
Was hiring of football pitches an exempt supply of land?
The case. Netbusters (UK) Ltd (N) paid local authorities and schools for block bookings of football pitches and netball courts. It then hired out the pitches to local teams that participated in an organised league competition. N originally charged VAT on the fees but - following a similar case in 2012 - decided that the income should have been exempt as a supply of land. HMRC’s view was that the company was making a taxable supply of sport management services and 20% VAT had been correctly charged. ...
EXEMPT SUPPLIES - 01.06.2023
One-to-one golfing lessons subject to VAT?
Q. My business trades as a limited company and I am the only director and shareholder. The only activity of the company is to buy and sell golfing equipment and it is registered for VAT. I have been asked to provide golfing lessons to a wealthy client and I understand that this income will be exempt from VAT for the company. Is this correct? ...