Category: Caution

UK VAT Registration – a very close shave

I’ve just read the most surprising VAT tribunal decision in the case of Mr & Mrs Belcher (TC05891) who seem to have been very lucky indeed.  I would definitely not recommend anyone adopting the same arrangements for their own business; I doubt many would achieve the same outcome. The argument was whether Mr & Mrs […]

UK VAT rule – ‘No invoice, no claim’

Here’s a rare thing – a straightforward VAT rule! ‘No invoice, no VAT claim’ is the consistent line coming out of tribunal so it really is worth checking your files. In theory HMRC can accept alternative evidence if it’s “almost impossible”, or “excessively difficult” to obtain a valid VAT invoice from the supplier but it […]

UK VAT Plan for Brexit

Even though we’re on the brink of change it’s not too early to make a Brexit VAT plan.  Here’s what you can do – 1. Map out how all of your purchases and sales work in terms of geography and contracts – check you include all that you’re doing and how you’re doing it. 2. […]

UK VAT on flowers -v- food

Always remember VAT works on the ‘guilty until proven innocent’ principle.  VAT is due unless a specific relief applies.  All of the VAT reliefs are narrowly applied so you should avoid expecting HMRC to be generous in any interpretation. Busily buying seeds reminded me of the fine line between zero-rated seeds for growing food and […]

UK VAT Flat Rate confusion

You might know that service businesses that don’t buy in goods or materials will have to pay a higher VAT flat rate from April.  Question is do you understand who will be affected and how? The new rules were covered in a recent HMRC webinar, which actually proved to be quite entertaining.  HMRC referred to […]

UK VAT due when the customer collects

Always remember that VAT is due unless you can prove it isn’t.  Proving that goods have left the UK is an absolute rule that should never be overlooked.  If you can’t prove it then VAT is due to HMRC.  It’s all about having the right bits of paper. The tribunal decision in Grange Road Car […]

UK VAT Flat Rate News

If you’re interested in the VAT Flat Rate Scheme increase affecting limited cost businesses you can find out more in HMRC webinars on Wednesday.  HMRC are running two webinars when they outline the test that will need to be applied. Wednesday 01 March 12:00 to 13:00 Register now for this meeting Wednesday 01 March 14:00 to […]

UK VAT claims on petrol allowances

Anyone claiming VAT on employee expenses should make sure they hold proper evidence otherwise their claims won’t safe.   This was a lesson learnt the hard way by a group of pharmacies trading as Cohens Chemist (Tribunal reference TC05643) when they had £67,000 VAT claims blocked. It’s very easy to be sniffy about details like […]

UK VAT & deciding what’s being sold

Here’s a case that goes to show you just have to read the rules objectively.  VAT will be due unless tightly worded exceptions apply.  No matter how hard you try you can’t push something into a VAT relief if it just shouldn’t be there. Maybe it’s just me but I think I heard echoes of […]