Following the pattern of recent weeks HMRC continue to publish further detailed guidance to businesses on trading with the EU ahead, potentially, of Brexit on the 31 October.
Over recent days HMRC have published further guidance on the following issues arising from Brexit (Click for links);
- The mechanism to reclaim VAT incurred in EU countries
- Changes to the VAT reporting requirements for sales of digital services in the EU – including the closure of the UK MOSS system.
- Specific transport procedures for moving goods through the Port of Dover including the use of Manston Airport and a site in Ashford.
In recent days further letters have also been issued to businesses that have traded previously with the EU including a checklist for Brexit preparations. Please click here for an example of the letters.
In a sudden change HMRC have delayed the introduction of the new ‘reverse charge’ VAT rules scheduled to come into effect from 1 October 2019. Citing industry concerns and to avoid the changes coinciding with Brexit the government has announced that the introduction of the rules will be delayed for a year until 31 October 2020. See the full announcement here.Read More
Government launches Brexit preparation advertising campaign
The government has launched a substantial advertising campaign to advise individuals how to prepare for Brexit on the 31 October. Alongside this a new Brexit website has been launched – www.gov.uk/brexit
The website collates much of the previous guidance issued in order to prepare businesses and individuals for Brexit – including specific guidance for businesses importing from or exporting to the EU. This follows on from further preparation in recent weeks – including the automatic issue of EORI numbers to exporters.Read More
Over recent days HMRC appear to be accelerating planning for a ‘no deal’ Brexit with several communications issued this week along with a letter being sent to some businesses.
Some VAT registered businesses will have received a letter from HMRC this week which automatically issues an EORI number to the business. Previous Brexit related communications have advised businesses to register for an EORI number voluntarily but the suggestion is that response has been slow and HMRC have now decided to auto-enrol businesses with EORI numbers. (more…)Read More
We are saddened by the recent death of Len. He started working for Burgess & Burgess in London in 1953 and was made Senior Partner in 71. With Len’s guidance and leadership the firm grew substantially and continues to grow today, with currently 19 Partners and over 150 Staff.
The KM gives a brief glimpse to the man that he was.Read More
In recent years there have been various tax measures – such as restrictions on the tax deduction for mortgage interest or increased SDLT rates – that have worsened the tax position regarding investment properties. A further raft of changes are due to take effect from 5 April 2020 – that may mean that some tax payers consider that now is a good time to sell investment properties.
The changes due to take place from April 2020 include adjustments to what is known as ‘Lettings Relief’, a restriction on the periods qualifying for Principal Private Residence Relief and a change in the tax payment dates.
Here we review the potential impact of these changes by way of a case study based on an illustrative property purchase. (more…)Read More
Recent months have seen significant changes to the VAT system in the UK with the introduction of Making Tax Digital (MTD) and further changes are due to be implemented later in the year including a new domestic reverse charge system for the construction sector.
The new Making Tax Digital regime is however intended to be only an initial staging point on towards the transformation of the VAT system through the use of digital technology.
The next step? Transactional Data through MTD Filings
The logical next step will be an extension of MTD to include transactional data. Currently MTD filings include only the numerical entries from the nine boxes on the VAT return but a relatively straightforward addition is likely to be the submission of transactional data in MTD filings. This would, potentially, allow HMRC to review individual transactions through MTD filings.
The main challenge here for HMRC will be developing the ability to process huge volumes of transactional data. (more…)Read More
Later this year changes to the VAT system will come into effect that will have an impact on many businesses operating in the construction sector. These changes will add an additional layer of complexity to the already complex system of VAT in the construction sector. Here we look in more detail at how these changes will work.Read More