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VAT: Is Your Vehicle a Car or a Van?

For some time now there has been a restriction, or ‘block’, on the recovery of input tax incurred on cars. There are a few exceptions to this that have crept in over the years, driving schools, taxis, and hire cars may have the VAT recovered as their use can be clearly shown as being wholly for the business – the same can apply to ‘pool’ or demonstrator cars.

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Top ten tips for a VAT inspection

What do you do when the VAT man knocks on your door? Don’t panic, says Burgess Hodgson’s Greg Mayne, who here outlines his top ten tips for dealing with a VAT inspection. (more…)

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Will your VAT payment be fast enough?

Faster payment of VAT

When a business fails to submit and pay its VAT return on time it may attract a default surcharge, a percentage penalty that is based on the amount of VAT that is paid late.

Where there is a ‘reasonable excuse’ for the delayed payment then HMRC may reconsider and withdraw the surcharge. If the business is unsuccessful at that stage but still feels strongly enough about their case, they may take the appeal to a formal Tribunal and allow an independent process to review and decide the matter.

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Let me get that for you – VAT & Disbursements – UPDATED GUIDANCE

The earlier article on the VAT treatment of disbursements has had to be updated as a result of a VAT tribunal case. The example provided in that article that illustrated a non-VATable disbursement scenario has now been judged to be one that should attract VAT, and so should not be used as any kind of template or treatment to be followed.

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Let me get that for you – VAT & disbursements

It’s always nice when you get something paid for by someone else, but in the ruthless world of commerce it’s likely that any such action is going to end up on an invoice as a recharge at some point. Often the cost will be rolled up within an overall charge for goods or services, but occasionally it will be separately itemised as an added extra.

The question then arises of how to treat this for VAT purposes.The use of the word ‘disbursement’ in VAT terms has its own interpretation and definition, and has been recently tested in the courts in respect of legal fees that are recharged. In explaining how disbursements worked it was often the legal sector that provided good examples, as in the following situations;

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Are you a U.S. citizen?

Did you know that:

  1. You are still required to file U.S. tax returns even if you don’t live there?
  2. You could be caught a double taxation if your affairs are not setup correctly
  3. There are penalties for non – compliance

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ICAEW reminds tax credit claimants of 31 July 2017 renewal deadline

ICAEW has issued a press release reminding tax credit claimants of the 31 July deadline for renewing tax credits claims.
The press release explains that if the cut-off date is missed, tax credit payments will stop and tax credits already paid since 6 April 2017 may need to be repaid. Claimants should already have been sent a renewal pack and tax credits can be renewed online, over the telephone or by sending the paper form included in the renewal pack by 31 July 2017.
The tax credits renewal process does two things: it gives HMRC the information it needs to finalise tax credit awards for last year, and it will also renew the claim for the current year.
View the press release: Tax credits – don’t miss 31 July deadline.

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VAT: A “heads up” for Property Developers

The following will be of interest to anyone involved in development projects that include any ‘planning gain’ improvement works.

 
In a recent European Court of Justice case a Bulgarian developer was building a large holiday village. One of the requirements for obtaining the planning was that the developer substantially upgraded the local waste pumping station. In England and Wales this might be referred to as a ‘section 106’ (of the Town and Country Planning Act 1990) requirement. Similar examples might be for link roads, roundabouts or building community use areas or play parks. (more…)

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VAT Flat Rate – puncture repair required?

Article written by Greg Mayne, Director of Indirect Tax and VAT

greg-mayne-boxWe have had a number of enquiries from clients currently operating the VAT Flat Rate Scheme who are concerned about the imminent changes to the scheme. As a quick reminder the Flat Rate Scheme allows smaller businesses (those with annual turnover of less than £150,000) to pay to HMRC a percentage of their income, rather than the ‘normal’ VAT charged on their supplies – this percentage being lower than the standard rate of VAT (20%).

 

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