News by Category

Unregistered suppliers and VAT

8th September 2021
You need some building work done at your office, but your preferred supplier is not registered for VAT. This means that it will not be able to reclaim input tax on materials, increasing the final bill to your business. Is there a solution? Bob Johnstone takes a closer look. Frozen VAT threshold Even though the...
VAT on homeworking allowances

VAT on homeworking allowances?

7th September 2021
You are downsizing your office and have asked a few staff to permanently change to homeworking. You’ll pay them a one-off allowance towards the cost of setting up their home workspace. Can you reclaim the VAT they incur? VAT expert John Craig provides the answers. People often suggest that “putting it through the business” will...

Credit note or bad debt?

27th July 2021
A regular customer owes you a lot of money and has offered to pay half now if you agree to accept it as full payment for all outstanding invoices. But how do you deal with the bad debt? Our VAT expert John Craig explains in greater detail. The VAT rules are different according to whether...

July Q&A

2nd July 2021
REVERSE CHARGE FOR BUILDERS Q. I am a builder, and my cash flow has been badly hit by the new reverse charge rules. This is largely because I am no longer being paid VAT by my builder clients to use as working capital until my quarterly VAT return is due. Is it possible to issue...

May Q&A

3rd May 2021
Expenses for travel to temporary workplaces Q. In April 2020 we furloughed an employee who since June 2019 had been temporarily working away from her normal workplace. She is about to return to work at the temporary location and is expected to be there for the next six months at least. We have always paid...

Coronavirus VAT Deferral Payment Scheme

11th March 2021
If you deferred VAT payments due between 20 March 2020 and 30 June 2020 and still have payments to make, you have three options: • Pay the deferred VAT in full, on or before 31 March 2021 • join the VAT deferral new payment scheme – the online service is open between 23 February 2021...

VAT Reverse Charge

10th February 2021
New VAT rules for construction In this attached guide we look at the ‘Domestic Reverse Charge’ (DRC) that applies for VAT on construction services from 1 March 2021. This was announced in a consultation in early 2018, with the intention that it should be introduced on 1 October 2019. It was delayed for a year...

Trading changes following Brexit

11th January 2021
The United Kingdom officially left the European Union (EU) on 31 January 2020 and the 11-month transitional period ended on 1 January 2021. There are important changes businesses must now make in order to continue trading with the EU. VAT changes The UK left the EU VAT Territory on 31 December 2020. Following this date,...
Tips and Tax

Tax-free shopping to end

11th January 2021
At the end of September, the government announced the end of the VAT Retail Export Scheme (VAT RES) with effect from 1 January 2021. This means that overseas visitors will no longer be entitled to a VAT refund on items they buy in England, Scotland or Wales which they take home in their luggage. The...

Employee gifts and VAT

9th January 2021
After a tough year you might have scaled down Christmas gifts for your employees. Even so, you need to consider the VAT consequences which vary depending on the cost and type of gift. What should you be reporting on your VAT return? John Craig our VAT expert provides the answers. The cost of employing a...