VAT
Understanding the VAT Registration Threshold in 2025
As of 1 April 2024, the VAT registration threshold in the UK increased to £90,000. This means that if a business’s taxable turnover exceeds £90,000 in any rolling 12-month...
Assessing VAT errors
Unless HMRC can prove dishonest declarations they cannot assess for VAT errors more than four years after the end of the prescribed accounting period. So if an error is...
Reclaiming VAT on house extension
There are two ways to account for private use of a business asset. If it is not a capital item you can claim all the input tax and then pay VAT on the value of the private...
VAT and conversion services
HMRC's Policy Change on VAT for Dwellings Formed from Multiple Buildings In a significant policy shift, HM Revenue and Customs (HMRC) now accepts that a single dwelling can be...
Late VAT claims – all is not lost!
Normally VAT should be reclaimed in the VAT period in which it is incurred. If not then you need to make an error correction but if the net adjustment for all ‘errors’ is less...
VAT – Zero or 5% VAT for building works?
Following the introduction of Permitted Development Rights HMRC has clarified its policy concerning the VAT treatment of works where an individual planning application is not...
Reasonable Excuse for VAT Default Surcharge
Understanding Reasonable Excuse for VAT Default Surcharge Navigating VAT obligations can be challenging, and occasionally, businesses may miss payment deadlines. In such...
Changes to the VAT flat rate scheme from 1 April 2017
HMRC believes that small businesses have been abusing the VAT flat rate scheme (FRS). When reporting VAT payable the business ignores VAT on purchases with the exception of...
VAT surcharges
Ignore at your peril the receipt of a surcharge liability notice (SLN) or a letter of help issued to small businesses with a turnover of £150,000 who miss a deadline. What...
VAT and second hand car schemes
You will need to fill in a VAT return at the end of each tax period. Here are the special rules you must follow for any vehicles which you have bought or sold under the Margin...
Group VAT registration
What Is Group VAT Registration? Group VAT registration allows businesses with multiple companies to register under one VAT number rather than filing separate VAT returns. This...
VAT on Craft Fairs: What Stallholders Need to Know
Understanding VAT on Craft Fair Stalls Participating in a craft fair is a great opportunity for small businesses, but many stallholders may not realise the VAT implications....