Category Archives: VAT

VAT treatment of vouchers

August 30th, 2018

A summary of responses to HMRC’s consultation on VAT and vouchers was published on 6 July 2018. The consultation sought views about proposed new rules for the VAT treatment of vouchers and gift cards. The consultation focussed on how an EU directive, providing for the VAT treatment of vouchers, should be transposed into UK law. […]


Further MTD Guidance Published

August 14th, 2018

In response to calls for additional clarity from businesses and their representatives, HMRC have published further information on Making Tax Digital (MTD) to support them with preparation in the run up to the start of the mandatory MTD VAT service from April 2019. The guidance includes: – A new HMRC VAT Notice entitled Making Tax […]


Changes to the VAT flat rate scheme

January 6th, 2017

In a surprise announcement in the 2016 Autumn Statement, the Chancellor announced that changes are to be made to the existing flat rate scheme for VAT (FRS) in order to tackle perceived ‘aggressive abuse’. The changes, which will take effect from 1 April 2017, are designed to ‘reduce the incentive for firms and agencies to […]


HMRC clarify pre-registration VAT policy

November 30th, 2016

HMRC have recently published Brief 16 (2016), entitled Treatment of VAT incurred on assets that are used by the business prior to VAT registration. Broadly, the brief aims to clarify when, and to what extent, VAT is deductible and what to do if the correct treatment has not been applied. A business registering for VAT […]


HMRC go live with Verify identity authentication

June 15th, 2016 Verify, the online service taxpayers will need to use to prove their identity before accessing HMRC’s digital services and other government online services, is now live. The central government platform for online identity assurance has been under development for some time by the government digital service (GDS) and has been available in a beta […]


Flat Rate Homeworking Expenses

November 5th, 2015

Many small businesses can choose to be taxed on the basis of the cash that passes through their books, rather than being asked to spend their time doing calculations designed for big businesses (‘cash basis’). Where the cash basis is used, it is also possible for the business to use certain simplified arrangements for claiming […]


Commercial Property Ownership – some tax implications

January 10th, 2015

This blog looks at: VAT – whether or not to opt in? Form of ownership Tax relief through capital allowances   VAT – Opt in or Opt out? You do not need to register for VAT unless your annual turnover from business income is likely to exceed £81,000. Otherwise non-domestic & commercial property is, by […]


Leaving the flat rate scheme

November 23rd, 2014

The good news for small businesses using the flat rate scheme is that the exit thresholds are almost 30% higher than the joining levels in relation to turnover. A business needs to check on the anniversary of joining the scheme that gross turnover for the previous 12 months has not exceeded £230,000. If it has […]


Mini One Stop Shop – Friendly retail store or admin nightmare?

November 16th, 2014

This sounds like a friendly retail outlet where you might buy a pint of milk on a Sunday evening. In fact it is short-hand for the online portal which UK businesses should use from 2015 to account for VAT they owe in respect of digital services provided to customers in other EU countries. We mentioned […]


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