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 a supply being either one of goods or of services, a distinction they clearly see as being really obvious. However what became evident from the FAQ section of the webinar was that no-one else seemed to recognise the distinction. There was a sense of incredulity in some of the replies given which made me wonder at what point would they would ask themselves how they might better communicate?
They seem to have made the transitional rules unnecessarily complicated so please watch your step.