VAT Articles

The End of VAT Deferral

VAT Deferral Scheme Many businesses will have taken advantage of the Governments VAT Deferral scheme which allowed a business to defer until 31/3/2021, without penalty, the VAT due to be paid on VAT returns with a due date ending between 20 March 2020 and 30 June 2020; essentially payments due for the quarterly VAT returns…

Coronavirus update – Deferment of July 2020 Payment on Account

HM Treasury have recently released an update on the option for a taxpayer to defer their second Self-Assessment Payment on Account which would usually be due by 31 July 2020. What is it? The Self- Assessment payment on account, that is ordinarily due to be paid to HMRC by 31 July 2020 may now be…

Updated: UK VAT Deferral

Last week the Chancellor of the Exchequer announced that there will be a deferral of VAT due to be paid between 20 March 2020 until 30 June 2020, see here.  This essentially means that businesses will automatically qualify to defer payment of the VAT due on their VAT returns for the VAT periods ending February,…

Coronavirus: UK VAT Deferral

Last week the Chancellor of the Exchequer announced that there will be a deferral of VAT due to be paid between 20 March 2020 until 30 June 2020, see here: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses This essentially means that businesses will automatically qualify to defer payment of the VAT due on their VAT returns for the VAT periods ending…

Late registering for VAT?

The date at which a business is required to be registered from is a matter of legal fact which is not subject to any time limit. Therefore, if a business exceeded the VAT registration threshold that was in force 15 years ago and thus was required to be registered from that time, HMRC can register…

The effects of Brexit on VAT

11pm on 31 January 2020 will see the UK officially leave the EU and no long be an EU Member State. The Withdrawal Agreement the UK agreed with the EU provides for a transition period from the day of Brexit up to 31/12/2020 but allowing that transition period to be extended if required. We have…

Why am I being asked by HMRC to provide a security payment for my VAT?

If HMRC think that you may not comply with your VAT obligations based on your compliance history in either your current or a previous business, then you as a taxable person may receive a Notice of Requirement for a security payment to be made. The legislation for this s Schedule 11 para 4(2)(a) VATA 1994…

Brexit is coming, are your clients ready?

As we all know the time frame for leaving the EU remains 31 October 2019, only a few weeks away from publishing this article, and despite the current wrangling’s in the UK Parliament the reality is that if the EU simply say ‘no’ to any further delay we will leave the EU on 31 October…

Brexit and the VATMOSS

What happens when we are no longer an EC Member State? Unless something dramatic happens in the next few months the UK will leave the EU on 29 March 2019 but, at present, no-one knows whether we will leave with or without a deal or, if we do leave with a deal, whether that deal…

What are the VAT Differences Between Publications?

EU Council addresses VAT differences between electronic publications and physical publications The e-publication directive has been adopted by the EU Council after an agreement was reached on 2 October 2018. Effective from 6 November 2018, the Council is allowing alignment of VAT rules for electronic and physical publications. This has opened up the possibility for…

Definition of a dwelling amendment

HMRC have updated their VAT Notice 708. The latest amendment issued on 20th July 2018 has been released to include a clarification of the definition of a dwelling. Paragraph 2.1 has been amended to show that a dwelling can consist of more than one building. The wording used by HMRC has to be applauded as…

Oil and gas contractor clients VAT repayment

Your contractor clients may be due a significant refund of VAT if in the past 4 years they have: Contracted in the oil & gas sector Registered and paid Flat Rate VAT (FRV) at 14.5% This is based on the decisions made in the Tribunals of Idess Ltd and SL Subsea Engineering Ltd. As a…

Umbrellas – are they exempt?

Are umbrellas VAT exempt? OK, so in this instance the term “umbrella” is used in regard to umbrella companies working in the medical personnel supply industry and recent contact from such a company suggests that HMRC may be taking a closer look at supplies of medical staff made by umbrella companies. Generally speaking, the supply…

UK VAT Registration

UK VAT registration requirements If an overseas online retailer sells goods which are already located in the UK at the time the goods are sold then they must register for VAT in the UK and pay UK VAT to HMRC. HMRC have informed online marketplace providers running shopping websites for their online sellers that they…