The original method of filing VAT returns in Xero is changing soon and we are assisting our clients to be ready for this.
In the latest of our series of weekly Brexit Blogs, Rob Geary explains how Brexit will result in changes to VAT rules which will affect any business importing or exporting goods.
‘A recent first-tier tribunal case, Wickford Development Co Limited v HMRC, has been found in favour of the taxpayer, raising again the possibility of HMRC incorrectly interpreting the scope of the ‘Builder’s Block’, this being HMRC’s block on builders and contractors recovering input VAT incurred on goods that are not ‘building materials ordinarily incorporated in a building’.
As part of the Government’s package of measures introduced to support businesses during the COVID-19 epidemic, the Chancellor has announced two extensions to initial changes concerning VAT deferments and the reduced rating of certain supplies.
Previously, HMRC guidance stated that when customers are charged early termination fees to withdraw from contracts, or payments are required for breach of contract, then these charges are not generally relating to a supply and are outside the scope of VAT.
Currently, under the Low Value Consignment Relief (LVCR) a UK business importing goods from outside the European Union of a value below £15 is not required to pay import VAT.
Chartered accountants Lovewell Blake have appointed a former HMRC VAT expert to their specialist VAT team
Many businesses purchase vehicles to support their day-to-day operations. Whilst it may be assumed that, as a vehicle is being acquired by a business to support their activities, the VAT incurred on the purchase costs would be recoverable, this is often not the case.