VAT Questions

VAT on Baby Clothes

My client, who sells baby gifts and accessories, has just registered for VAT. Are these zero-rated supplies like children’s clothing? Items sold include baby sized towels, muslin cloths, blankets

Payroll for UK employees going to work overseas and offshore remote workers

We are frequently asked to advise on the Income Tax and National Insurance treatment of UK employees who are being sent to work overseas, and employees who will work remotely from an offshore locat

Supply and Installation of Window Blinds

My client supplies blinds for windows and back in 2021, supplied and installed some blinds to houses at a new housing development before the houses were complete.

What if the Supplier has Charged UK VAT

Do I need to reverse charge VAT for any supply of services ((i.e., software from Apple, Microsoft, Adobe etc…) with no valid vat receipt (no GB vat number). Is any supply of services (i.e.

Are ‘as new’ goods classed as “second-hand goods” for the Second-Hand Margin Scheme?

My client buys high end, high value footwear, mainly trainers, from private sellers so does not incur VAT when he buys the footwear. However, he will only buy the footwear if they are still boxed a

FRS and transferring your VAT number

My client is a VAT registered sole proprietor who has been operating under the Flat Rate Scheme (FRS). His turnover is now around £200,000, and he has formed a new Ltd Co and transferred his busin

Blocked business entertainment or recoverable input VAT?

My client is a business mentor who provides coaching services to businessmen and women. Their customers also subscribe to a membership club whereby they get to attend meetings and business conferen

Domestic Reverse Charge and pending VAT registrations

A question that has been raised with me on several occasions’ is: Should the domestic reverse charge rules be applied for subcontractor construction businesses that are waiting to have a VAT regi

What is the VAT treatment of a recharge of an MOT?

One of my clients runs a car repair centre that is not an authorised MOT testing station but does offer MOTs to his customers. If a customer wants an MOT, he takes their vehicle to a local authoris

VAT charged on energy bills

My client incurs VAT on electricity that they use in their business. They have read on several websites that VAT incurred on supplies of energy cannot be recovered. At least one such website claims

This is not strictly a VAT question but where can I find out more information on importing and exporting goods into and out of the UK?

This is not strictly a VAT question but where can I find out more information on importing and exporting goods into and out of the UK?

Partnership property income

My client is a VAT registered husband and wife partnership who run a plant and machinery hire business. In addition to the income received through the hire business they have, for the last c

VAT on Protection Services

My client is a business providing security services. A potential customer based in the UAE is coming to England to attend a conference being held in London and they looking to engage my client to p

Partial exemption and a VAT 427 claim

My client recently deregistered from VAT but when they were registered for VAT they had both taxable and exempt income and so were partially exempt. We are now raising our final accountancy

UK business selling goods straight from EU supplier to EU customer

Our client sells machinery to businesses customers that are based in the EU and registered for VAT in the EU countries in which they are based. My client’s sole supplier is based in Poland

Use of Margin Scheme if goods are converted before sale

My client buys and sells second-hand campervans, buying from private individuals and using the margin scheme to account for VAT on these sales. He also buys in vans, again from private individuals

Construction Reverse Charge and CIS Gross Payment Status

My clients is a subcontractor in the building industry and has Gross Payment Status for CIS. He has just entered into a contract to provide building services to a VAT and CIS registered main contra

Claiming VAT on assets when re-registering for VAT

A sole proprietor client was previously registered for VAT but deregistered as his turnover dropped below the deregistration threshold. Although the client held some assets when he deregistered, he

Reduced Rate of VAT

My Client is an ice-cream parlour that sells their own homemade ice-cream for consumption within the shop but also as for takeaway. Do my client’s sales temporarily qualify for the reduced rate o

Self-billing

My client is a carpet supplier and fitter subcontractor involved in a large new dwelling development and working to a major building contractor. When he started working to the main contractor, the

Business to Business supply of service to an EU business not registered for VAT

My client has provided management consultancy services to a business based in Germany. The German business advised that they are not registered for VAT in Germany so my client has charged UK VAT un

Non recoverable VAT on purchase

My client is partially exempt and some years ago purchased a van that was specifically for the exempt side of their business. The VAT incurred on the van was therefore wholly attributable exempt in

Call off stock rules

The EU is making changes to the call off stock rules from 1st January 2020. Will this affect me as I keep my stock in a fulfilment centre in the EU? I only sell to consumers (B2C).

Recovery of VAT incurred between deregistration and re-registration.

My clients turnover dropped below the deregistration limit about 3 years ago and so he deregistered and had to account for output tax on his stocks and assets at the time of deregistration. His tur

Input VAT recovery when recharging expenses

My client is a marketing consultant recharging his overseas business customers for travel, materials and entertainment expenses incurred in the UK. Can he reclaim the related input VAT?

Length of time registered before deregistered

My client registered for VAT as a sole proprietor approximately 5 months ago as her turnover had reached the compulsory VAT registration threshold. However, since then she discovered she was pregna

Prepayments and Non-refundable Deposits

We are still getting many questions on the Vantage VAT helpline relating to the changes which came in on 1st March 2019 relating to non-refundable deposits. From what date did this apply?

VAT Management Charges

My client has 2 VAT registered companies. One is a fully taxable consultancy business, the other is a new property investment company that is partly exempt. The consultancy company incurs al

Accounting for VAT on Christmas Hampers

My client is a food retailer and is putting together ‘Christmas boxes’ that include items which, when sold separately, would be standard-rated or zero-rated. “These ‘Christmas boxes’

Is Business Property Relief due?

My clients (husband and wife) have a Limited Company with a 50/50 shareholding.  It is an Engineering/Fabrication company and has been trading for four years. They have asked me to do some Estate

VAT Return Reclaim

How do I get a repayment from HMRC after submitting a VAT return reclaim?

Is this project outside UK VAT?

Our client is a UK based company that has been set up to buy a plot of land, build a number of commercial premises on the land. All funding for the development project is to come from a ‘loan’

Zero-Rating

My client is a dog food manufacturer selling his food as working dog food. His working dog food is produced by buying in fresh human grade meats, mincing or cutting it into chunks and packaging it

Should you charge overseas customers VAT?

My client provides staff in the entertainment industry and is hiring out a DJ for an event to be held in the UK. The invoice is being sent to a business in Dubai, do we charge

Flat Rate Scheme

My client has previously been using the Flat Rate Scheme (FRS) but now wishes to change to normal accounting method. He applied to leave with effect from the start of his current

Zero-rate work

My client is a building contractor working on the renovation of an existing 2 storey commercial building. The developer also wants my client to build a new 3rd storey which is to contain

Do I charge VAT?

My client is providing landscaping services to a developer constructing a new house. Do I charge VAT?

Receiving a visit from a VAT officer

My client was the subject of a VAT visit and during the visit the VAT officer advised that he was going to uplift my client

VAT for Intending Traders

My client is a newly formed property development company and we have recently tried to register them for VAT as an “inten

Is my customer VAT registered?

How do I check if a supplier or customer is VAT registered and giving me their correct VAT number?

Claiming VAT on Business Entertainment

My client is throwing a summer party for his staff and are allowing the staff to bring a guest. They have incurred VAT on t

VAT Fraud

HMRC is Tackling Online VAT Fraud HMRC is tackling online VAT fraud. Changes first announced by the Chancellor in the Autumn Budget 2017 came into effect on 15 March 2018. F

VAT Implications on Conversions

The Upper Tier Tribunal (UTT) decision in regards the cases of Languard New Homes Ltd and DD & DM MacPherson, which were heard together, has demonstrated how vitally important it is for a devel