Tax / Accounting for VAT adjustments when prices change

HMRC has updated the accounting rules for adjustments to VAT when there are increases or reductions in the price of goods or services, set to come into effect in September

Tax / Plans to simplify VAT capital goods scheme

The government has launched a consultation on simplifying VAT on capital assets to reduce the administrative burden of capital goods scheme (CGS) compliance

Tax / VAT Q&A: how travel agents must account for VAT using billback arrangement

In this week’s Q&A, Vivienne Scott, senior VAT consultant at Croner Taxwise, explains how travel agents must use the Tour Operators’ Margin Scheme (TOMS) to account for VAT

Tax / HMRC promises leniency despite slow take up of Making Tax Digital

HMRC has promised not to throw the book at firms who struggle to register for Making Tax Digital (MTD) as new figures show total take-up lagging in certain sectors

Tax / Scope of reduced VAT rate for solar panels narrows

The VAT incentive for installing energy efficiency measures in residential accommodation is to be amended to bring the UK into line with EU rules, HMRC has confirmed

Tax / Case: Scottish partnership can join VAT group

In Baillie Gifford & Co [2019] TC 07225, a Scottish partnership with three subsidiaries running an investment management business made a VAT group

Tax / Five-day turnaround time for MTD direct debits

Taxpayers need to allow five working days to set up a direct debit instruction for the new Making Tax Digital (MTD) service

Tax / VAT Q&A: how to re-register for VAT

In our regular Q&A series, Croner Taxwise VAT consultants explain the rules around re-registering a business for VAT after a period of time when turnover fell below the VAT threshold

Tax / VAT updates: July 2019

In this month’s VAT roundup of significant cases, Graham Elliott CTA (Fellow), VAT specialist at City & Cambridge Consultancy, considers when payroll services for a carer are not subject to VAT, two NHS trust VAT rulings and the sale of fractional interests in hotel rooms

Tax / HMRC takes action to stop renewable energy carousel VAT fraud

The government is cracking down on abuse of renewable energy certificates where fraudsters get involved in complex reselling to steal VAT payments and deprive the Exchequer of revenue

Tax / Lack of accessible software for MTD opens up exemptions

Anyone who cannot find suitably accessible software to comply with the Making Tax Digital for VAT rules should apply to HMRC for a temporary exemption, for example for age or disability reasons, says the Low Incomes Tax Reform Group (LITRG)

Tax / VAT Q&A: flat rate scheme and pre-registration input tax

In our regular Q&A series, Croner Taxwise consultant Jason Croke, explains the registration requirements for a first-time registrant planning to use the flat rate scheme for VAT compliance and recovery

Tax / Nunn: absence of Making Tax Digital nudges and prompts

Relying on software exclusively for Making Tax Digital for VAT is fraught with potential problems, with any errors in calculation likely to create problems for taxpayers who do not know the complexities of tax law. Yvette Nunn, director of Berkeley Associates recommends a spreadsheet backup to avoid penalties down the line

Tax / Q&A: paying VAT on a garden office construction

In our regular VAT Q&A series, Sally Atkins, VAT advice consultant at Croner Taxwise, examines the underlying principles of whether VAT can be reclaimed on construction of a garden office, bearing in mind the strict rules on business use only

Tax / VAT updates: June 2019

In this month’s VAT roundup of significant cases, Graham Elliott CTA (Fellow), VAT specialist at City & Cambridge Consultancy, considers the judgments on the timing of a tax point in Budimex, non-owners’ import obligations, and when prescription drugs can, and cannot, be zero rated following Pearl Chemist decision