Category: Numbers

UK VAT is different (after all) for Making Tax Digital

I had been feeling increasingly worried about HMRC’s Making Tax Digital proposals as – despite various efforts – they seemed to be ignoring the very idea that VAT accounting can be complicated.  What relief to read this in the recently released consultation response document (here) – “The government understands the concerns about translating complex VAT […]

Prospect of Simple UK VAT

Good news that the complicated bits of VAT are being reviewed by the Office of Tax Simplification to ‘ensure that the system is fit for purpose’.  This is not a VAT rate review but maybe owes something to Brexit? You can read more here I’m particularly pleased that the review will consider whether we need […]

Late UK VAT returns – no excuses!

Penalties for late VAT payments still apply even if an employee hides the facts from the company directors. You just can’t abdicate from being responsible for making sure VAT is being handled properly. The Damn Yankee Limited (TC05495) failed in its tribunal appeal against £49,000 penalties for late VAT payments even though the directors had […]

UK VAT-free new cars

Although you might know that VAT can be claimed on business cars, please don’t think the claim comes without strings attached. In three recent cases the tribunal looked at the rules in detail with mixed results for the taxpayer. In a nutshell a business can only claim back VAT on buying a new car if […]

Even accountants make UK VAT mistakes

There are a few parts of the VAT system that only give you one chance to get right including choosing the start date for a new VAT registration.  Getting this wrong can be extremely costly, as in the failed tribunal appeal made by Max Investments Ltd (TC05063). Max Investments lost out on a VAT claim […]

Don’t ignore UK VAT on over-payments

Two unrelated VAT cases struck me as being potentially important for lots of businesses. The VAT Tribunal decided that National Car Parks had to pay VAT on all of the payments received not just on the charges levied – the difference arising from car park cash machines [annoyingly] not giving change. The Court of Justice […]

UK VAT risks using expense claim Apps?

Everyone hates doing their expenses don’t they, so the idea of having an App to do the work for you is brilliant. However I can’t help wondering if VAT claims might be exposed based on the ‘rubbish in, rubbish out’ theory. What if an invoice is two sided – as so many of them are […]