HM Revenue & Customs (HMRC) has updated their guidance on the new regime for penalties and interest for late payment of tax. This is the next step in an ongoing process of unifying the rules across all the taxes.
An ongoing area of risk for both VAT registered and Non-VAT registered businesses is the place of supply of their services, as there are many small differences which can catch suppliers out. For VAT purposes, the place of supply is generally where a business is liable to charge VAT.
There is a special mechanism to recover VAT incurred on building, or converting a non-residential property into, a new home for you or a family member to live in. This is often referred to as a DIY VAT claim and is well worth exploring to recover some of the VAT costs that could otherwise be forgotten about.
When Making Tax Digital for VAT (MTD) was introduced back in 2019, it was compulsory for most businesses trading above the VAT threshold of £85,000 to keep records in a digital format and submit their VAT returns using MTD compatible software.
In response to HMRC's consultation on simplifying the rules relating to land and property, the Institute of Chartered Accountants in England and Wales (ICAEW) has urged HMRC to abolish all VAT exemptions and remove all VAT options.
A recent Court of Appeal case concerning the Royal Opera House Foundation has decided that that there was no direct and immediate link between the costs of staging productions and their taxable supplies of catering etc. The production costs were found to be ‘directly and immediately linked’ to ticket sales which are exempt from VAT due to the cultural exemption rules and the VAT costs incurred on them as a consequence was irrecoverable.
Three schemes were launched on 1 July to deal with VAT on business-to-consumer supplies of goods and services to EU customers.
The Supreme Court’s recent decision in Balhousie Holdings [Balhousie Holdings Ltd v HMRC  UKSC 11] indicates that care home operators (and other entities such as charities and universities) may be able to use sell and lease back arrangements to finance the construction of new buildings without incurring a significant VAT penalty.