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.
At present, only VAT registered businesses with a taxable turnover greater than £85,000 are required to register for Making Tax Digital (MTD) and submit their returns through compatible software.
HMRC have advised that the reduced rate of VAT (5%) will apply to these supplies from 15 July 2020 until 12 January 2021.
Following Rishi Sunak's announcement in the Summer Statement, HMRC have updated their guidance regarding the temporary reduced rate of VAT which will apply to supplies of hospitality, hotel and holiday accommodation and attractions.
Whilst delivering the summer statement in Parliament on 8 July 2020, the Chancellor of the Exchequer, Rishi Sunak, presented his ‘Plan for Jobs’ worth up to £30 billion to help Britain bounce back from the Coronavirus outbreak.
Some adept thinking from the Chancellor is welcome, but he will certainly need to do more in the autumn.