As part of HMRC’s ambition to become a modern, trusted tax authority, it is changing the way penalties are issued for submitting late VAT returns and paying VAT late, which will affect all VAT registered businesses from 1st January 2023. The new penalties replace the default surcharge system and now also apply to clients who …
European VAT Changes from 1st January 2021 The UK left the EU officially on 1st January 2021, when new rules will come into force. Businesses will have to comply with these rules in order to import or export goods from EU member states. From 1st January 2021 Acquisitions and Dispatches will now be called Imports …
We published a blog at the beginning of January 2021 in respect of VAT due between 20 March 2020 and 30 June 2020 which was deferred. This was originally payable by 31 March 2021. However, it is now possible to pay in instalments. HMRC have recently announced that the scheme will be open from 23 …
The VAT Domestic Reverse Charge is a change to charging VAT within the construction industry. It is essentially an anti-fraud measure designed to deal with ‘missing trader’ fraud, where companies charge and receive VAT from customers but have no intention of paying this VAT to HMRC. When Does It Apply From? The Domestic Reverse Charge …
In the spring of 2020, one of the measures for helping businesses to cope with Coronavirus was the ability to defer VAT which was due for payment between 20 March 2020 and 30 June (as mentioned here). This was initially deferred until 31 March 2021. HMRC subsequently brought in a further measure to help. Businesses …
Here’s my story about how I was invited to the House of Lords to talk about Making Tax Digital for VAT. The issue of Making Tax Digital (MTD) has been with us for a couple of years now. This is HM Revenue and Customs (HMRC) dictating how taxpayers should send information to them. It was …
From 1st April 2019, if you have a VAT registered business with a taxable turnover above £85,000, HM Revenue and Customs (HMRC) are introducing some important changes which will affect you. They are introducing Making Tax Digital for VAT (MTDfV). These may have a significant effect on how you do your bookkeeping. From your first …
If you don’t believe that HMRC make mistakes, read this! We act as agents with our client’s dealings with HM Revenue and Customs (HMRC) and sometimes they get it wrong. A recent incident has highlighted how easy this can be. We had finished a VAT return for a client, ABC Contracting Limited (*), and went …
A report by the Office of Tax Simplification (yes, one really does exist) in 2017 floated the idea of reducing the VAT registration threshold. Currently, the VAT registration threshold in the UK is £85,000. It has steadily risen over time, and is currently one of the highest in the EU. The average threshold for VAT …
There was very little in the 2016 Autumn Statement which directly affected small business, but one measure caught our eye; HMRC are changing the VAT Flat Rate Scheme. The VAT Flat Rate Scheme is a simplified scheme for accounting for VAT. If you are VAT registered and on the scheme, you forego the ability to …