VAT
VAT recovery on cars
If you are a taxi driver, car hire business or driving school, or buying a car for resale you can claim back the VAT (if VAT registered and making taxable supplies). But what...
Deposits and liquidation – caveat emptor when it comes to VAT
Deposits, VAT, and Supplier Liquidation When a business pays a deposit for goods or services, a VAT point is usually created, meaning VAT must be accounted for at that stage....
Fishy VAT Ruling
The Fishy VAT Argument A taxpayer recently attempted to challenge HMRC’s VAT treatment of fishing day tickets, arguing that the service constituted a mixed supply. The...
Pre-registration VAT on depreciating assets
HMRC currently expect you to make an adjustment for deprecation if you register for VAT and have an asset which has been used to make supplies pre-registration. However the...
Second hand schemes and VAT
Businesses selling second-hand goods, antiques, or works of art may benefit from a second-hand VAT scheme. Instead of paying VAT on the full selling price, they only account...
Spot the ball – exempt or taxable (for VAT)
Spot the Ball and VAT: The Court Ruling A recent Court of Appeal ruling has confirmed that Spot the Ball competitions qualify as a game of chance, making them exempt from VAT....
Transfer of a going concern (VAT)
If a business is transferred from one type of legal entity to another the turnover of the old legal entity must be taken into account when determining whether VAT registration...
Residential buy to lets and VAT
If you are in business as a sole trader and registered for VAT, while you do not have to account for VAT on the letting income you might be able to recover the VAT on the...
Vertical residential conversions and VAT – What is the score?
This is a bit like a football match with First Tribunal decisions going first one way and then another. Currently the score is 2-2! The point at stake is whether carrying out...
Successful outcome for one of our clients!
We recently had a very successful outcome to a VAT investigation for one of our clients. HMRC were disputing the Flat Rate Percentage applied by our client, for the period May...
VAT and tax point rules
VAT tax point rules determine when VAT becomes due on a transaction. The tax point is the date that establishes when VAT must be accounted for, ensuring compliance with HMRC...
VAT – exemption for studies taught ordinarily at school
In the UK, VAT exemption for education applies to subjects that are ordinarily taught at schools or universities. This means that where a course aligns with mainstream...