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December Q&A

6th December 2022
Is there a new workplace pension scheme? Q. We’ve heard that employers are now able to enrol their employees into a different type of workplace pension scheme. Is this correct? A. Previously, employers were only able to offer their employees defined contribution (DC) and defined benefit pension schemes. However, following changes brought about by the...

Rugby club income

5th December 2022
A VAT-registered rugby club will be paid £15,000 each year from an insurance company in return for the right to purchase the club’s entitlement to tickets for international matches. Is this subject to VAT?  Gail Trojan discusses below. VAT is defined as a tax on the supply of goods or services made in the UK...

Turning commercial property into flats?

28th September 2022
You have planning permission to convert an empty commercial property into flats. You haven’t decided whether to let or sell the property when the flats are completed. What is the position relating to VAT for both renting or selling?  Tax expert John Craig discusses. The VAT position for converting a property for rent or for...

Notice from HMRC

23rd September 2022
Next quarterly or monthly VAT return must be filed using MTD-compatible software From Tuesday 1 November 2022, businesses will no longer be able to use their existing VAT online account to file their quarterly or monthly VAT returns. Businesses that file annual VAT returns will still be able to use their VAT online account until...

Planning a barn conversion?

14th September 2022
You live on a farm and have decided to convert a barn on part of the land into a self-contained dwelling and live there when it is completed. Building work will be carried out by external contractors. What are the VAT issues that you should be aware of?  Tax expert John Craig explains further. The...

Input tax on leased cars

9th August 2022
Your business leases cars for your employees, paying VAT on the monthly charges. But are you correctly claiming input tax and what happens if you return the vehicle before the end of the agreement? Or if you receive a rebate of your rental payments? VAT Expert John Craig explains. If the car has business and...

Travel expenses and VAT

4th July 2022
During routine checks, HMRC looks for mistakes which businesses commonly make. One such area is the VAT treatment of travel expenses. What should you check to ensure your VAT returns are correct? One error often made by businesses that provide professional services involves passing on their employees’ travel expenses to their customers. The following example...

Reclaiming hidden VAT

1st June 2022
You are planning improvements to your business premises; you will be using individual contractors for the work as they provided you with the best quotes. However, none of them is VAT registered which could mean you paying hidden VAT. Why and how can you reclaim it? Elaine Wight advises. With inflation rising, everyone is keen...

Easing cashflow with monthly VAT returns

31st May 2022
Is it possible to move to monthly VAT returns to get the cash in quicker? VAT Technician Elaine Wight explains. If most of your sales are zero-rated, then it’s likely that you usually get a VAT repayment every quarter. But having to wait for that VAT refund after the end of a quarter can cause...

Introducing HMRC’s new VAT penalties

26th April 2022
The first step towards alignment of VAT and direct tax penalties was due to take place in just two months but the government recently announced a delay. What’s the full story? Audrey Rankine takes a closer look. HMRC’s original timetable for the harmonisation of its late filing penalty and late payment interest regimes across most...