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...

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...

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...

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...

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...

You have identified a new business opportunity that you want to keep separate from your main business. What should you consider regarding your VAT recovery if you don’t want to register straightaway? VAT expert John Craig advises. You can voluntarily register for VAT at any time if you are either making or intend to make...

HMRC has recently updated its guidance about when a payment to a charity could comprise of two different elements, with different VAT outcomes for each part. What opportunities does this create for both charities and sponsors? John Craig looks at the change and how this might affect you. HMRC’s approach to philanthropy is very clear,...

The latest Making Tax Digital policy update from HMRC means that supplier statements can now be used to record expenses for input tax purposes, that’s a big time saving for the many businesses which use spreadsheet accounting. MTD for VAT was introduced for all UK businesses making annual taxable supplies of more than £85,000 for...

If you are a businesses involved in the supply of construction services, from 1st October 2019, you will need to change how you account for VAT. This is when the Construction Services Domestic Reverse Charge (CSDRC) is introduced, VAT expert John Craig takes a closer look. If you are a supplier making a supply of...

You have reviewed your business premises and realise that you have surplus space that could potentially be sub-let to another business. But what are the VAT issues that need to be considered before you make this decision? Kevin Ferguson  takes a closer look. LIABILITY OF RENTAL INCOME The starting point is that income you receive...