VAT

VAT for Law Firms – Disbursements

Law firms face a variety of challenges from a VAT perspective, one of which is the question of whether to account for VAT on disbursements charged to clients.  This is a common problem area, as there are many different types of recharges which are commonly described as disbursements, but only some can be treated as

[ Read More ]

VAT for Accounts Payable

Making Tax Digital (“MTD”) came into force on 1 April 2019. It is a common misunderstanding that MTD only affects submission of VAT returns but there is more to it. HMRC are being more prescriptive on the VAT information to be recorded in accounts. It is no longer a case of recording invoices or payments.

[ Read More ]

Construction Industry-new VAT accounting rules

A new ‘domestic reverse VAT charge’ will be introduced for certain supplies of construction services. The measure is being introduced to remove the opportunity for fraudsters to charge VAT and then not pay the VAT to HMRC.  The rules will mean that the recipient rather than the supplier will account for the VAT due. The measure

[ Read More ]

VAT and Brexit – no immediate changes!!

Some companies are concerned about how Brexit will affect VAT. However, we feel that in the short term, ie until we are closer “leaving date”, very little will change. The Government published a useful paper ‘The Process for Withdrawing from the EU’ which provided details of the legal process and the timelines which will be

[ Read More ]

Good news for colleges – possible VAT recovery!

The Court of Justice of the European Union (CJEU) has made a landmark ruling in the long-running dispute between Brockenhurst College, a further education provider, and the taxman. The college received income from meals served in its student restaurant and ticket sales for student productions performed in its theatre. After initially accounting for VAT the

[ Read More ]

VAT claim on company cars allowed

HMRC recently lost a first tier tribunal case on the recovery of VAT on the purchase of six cars. Although most VAT registered businesses are able to recover the VAT on the purchase of commercial vehicles the rules for the recovery on a car state two conditions must be met:

[ Read More ]

VAT Post Brexit – A Personal View

Having spent all my career in the wonderful VAT world since its introduction in 1973 I just thought I would share a few personal observations faced with Brexit. A wise man once said if you can understand the past you can prepare for and shape the future. So this is a very short abbreviated history

[ Read More ]

THE FUTURE OF VAT FOLLOWING THE BREXIT VOTE

Assuming that the UK leaves the EU as a result of the referendum of 23 June 2016, there are likely to be some changes to the UK VAT system. All 28 member states must operate VAT in accordance with Directive 2006/112/EC, which sets out a broad framework governing rates of VAT, deduction of input tax,

[ Read More ]