In an urgent response to the coronavirus pandemic and to support businesses severely affected by forced closures and social distancing measures the government has announced a temporary reduction in the VAT rate for certain items.
As part of the government’s business support initiative in response to the coronavirus crisis businesses were allowed to defer their VAT payments due between 20 March to
30 June 2020 until March 2021 without HMRC charging interest or penalties.
You’ll probably have seen the rumours in the press that the UK government is considering whether to follow Germany’s lead with covid-19 recovery VAT cuts. Here we take a look at what that could mean for businesses in the UK.
Some of the Bedrock team are rather partial to motorhomes, and indeed boats, so a recent CJEU (Court of Justice of the European Communities) judgement relating to the VAT treatment of caravan sites and harbours caught our eye.
It’s easy to get caught out by the VAT registration threshold if you’re operating a relatively new business. When starting up your business the thought of reaching a threshold of £85,000 may have seemed a distant dream but you’d be surprised how quickly you might have got there.
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