VAT

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January Q&A

7th January 2020
VAT on overseas work? Q. I am VAT registered as a window cleaner. I visit my mother in Dublin for one week every two months and do some work while I am there. Do I need to charge VAT on this work or is it not an issue because I am doing the work outside...
Do you need to make an adjustment for unpaid invoices?

Do you need to make an adjustment for unpaid invoices?

7th January 2020
Your business has some unpaid purchase invoices in the 90-day+ column of its aged creditors report. Input tax has been claimed on these invoices. Why does this lead to a problem and how could you avoid it in the future? Bob Johnstone from our Galashiels office investigates. If you pay and claim VAT based on...

Rent-free period on commercial property deal

6th January 2020
Mr Brown owns a warehouse that he rents out and the income that he receives is exempt from VAT. He has offered a new tenant a three month rent-free period at the beginning of a new rental agreement. Does this create any VAT problems? Our VAT expert John Craig discusses. Rent-free or not? The first...

What are the rules on motoring expenses and VAT?

3rd January 2020
When you buy a car, unless you use it 100% for business, you can’t reclaim any of the VAT paid on the purchase. However, more generous rules apply to the cost of motoring expenses such as accessories, repairs and so on. John Craig explains exactly what these rules are and how you can benefit from...

Topping up business income with Airbnb rental and VAT?

20th November 2019
You are registered for VAT as a sole trader and have decided to earn extra money by renting out a bedroom in your home via Airbnb. But is this income subject to VAT and, if so, is there a way around it?  John Craig looks at this futher. It is often forgotten that there is...

NOVEMBER Q&A

31st October 2019
Claim VAT on a new house build? Q. My wife and I have just bought a plot of land. We intend to build a new house on the land and sell it. Can we register for VAT and claim input tax on our building costs? A. The answer is yes, but there are two important...

Input tax on computers for homeworking

29th October 2019
Your business has agreed that some employees will become homeworkers and has provided laptops to assist them. What VAT issues must you consider with these laptops? John Craig discusses the implications. Homeworking If you provide your employees with a computer and there is no business use, the tax you pay to the supplier is not...

October Q&A

1st October 2019
Is hiring golf clubs to a non-resident taxable? Q. We hire golf clubs to private individuals. A customer came into our shop last week and insisted that the fee for hiring a set of golf clubs for a week should not be subject to VAT because he is a US resident. He produced evidence of...

VAT: deferral of new reverse charge for the construction industry

17th September 2019
IMPORTANT ANNOUNCEMENT FOR ALL BUSINESSES REGISTERED FOR VAT IN THE CONSTRUCTION INDUSTRY The date on which the new reverse charge was to come into force in the construction industry has been deferred by a year until 1 October 2020. Explanation of the change Industry representatives have raised concerns that some businesses in the construction sector...

September Questions and Answers

3rd September 2019
Can we submit monthly VAT returns? Q. We struggle to pay our quarterly VAT returns on time because we use the VAT money for other business expenses before it becomes due. Would HMRC allow us to complete monthly returns to help our cash flow? A. Unfortunately not. A business can only submit monthly returns if...