Once a business is up and running, the next major administrative area to be considered relates to VAT. At first glance, the VAT legislation can be complicated and time-consuming – particularly for small businesses.
From September 2019 HMRC will have new rules for adjustments to VAT following increases or reductions in the price of goods or services.
All traders – whether sole traders, partnerships, or limited companies – are obliged to register to charge and pay VAT once annual sales reach a pre-set annual threshold.
Anyone with a passing knowledge of VAT will know about the Jaffa Cake case as an example of how contrary the VAT regulations can appear. This has been reinforced through a recent ruling which saw HMRC lose £300k in an argument about chocolate brownies and VAT.
The Chancellor Philip Hammond has confirmed in his recent budget announcement that the VAT threshold will stay at the current level of £85,000 until April 2022
The EU’s Economic and Financial Affairs Council (Ecofin) has finally decided to reduce VAT on online publications, including electronic books, newspapers and periodicals which will bring them into line with print publications and digital media.
HMRC has updated its VAT cash accounting scheme and the conditions businesses must meet if they want to use it.
The UK government has announced that it will be legislating to deal with a particular version of VAT avoidance that involves ‘looping’ financial services via non-VAT territories.
Sub-contractors and contractors carrying out supplies reported through the Construction Industry Scheme might be interested in HMRC’s technical consultation with a draft explanatory memorandum and draft tax information and impact note.
We revisit here how to prepare and conduct a VAT inspection if your business is selected for an assurance visit by HMRC.