VAT News

VAT Due Diligence Webinar – 24 November 2020

We are pleased to announce a webinar focusing on VAT due diligence. Whilst at the forefront of HMRC’s strategy to combat the general incline in VAT fraud, due diligence and the adequacy thereof, is regularly used by HMRC to hold unassuming businesses accountable for fraudulent activity within their supply chains. Notably, this focus on due diligence […]

Published: 20/10/2020

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Fraud in labour supply chains and VAT due diligence

Background and principles Due diligence in the world of VAT is not a new concept but has been highlighted in a recent HMRC project and is a subject frequently addressed in Tribunal cases. Our readers will be familiar with some of these cases from our previous newsletters, such as Impact Contracting Solutions (Impact Contracting Solutions v HMRC TC07421), […]

Published: 14/09/2020

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Penalty for participating in VAT fraud

HMRC published a consultation paper at the end of September seeking proposals (until 11 November 2016) on the implementation of a new penalty for businesses that participate in VAT fraud. The proposal aims to address the different process between the ‘knowledge’ principle of denying the right to reclaim input tax and the civil penalties legislation. […]

Published: 07/10/2016

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Reasonable Excuse for late payment of VAT

In the recent FTT case, McNamara Joinery Ltd (TC05278), the taxpayer was successful in their appeal against HMRC’s imposition of a default surcharge. If a taxpayer is able to convince either HMRC or a Tribunal that they have a reasonable excuse for the late payment, they won’t be treated as in default. Default Surcharge Regime […]

Published: 31/08/2016

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We are sure that you will all be aware of the BREXIT result by now! The changed VAT landscape will begin to emerge after Article 50 of the Lisbon Treaty has been triggered (which we can expect to happen after the election of the new Prime Minister sometime in October).  There will then be a […]

Published: 24/06/2016

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Potential VAT Reclaims

HMRC have released a Business Brief   10 (2016)  following the First-tier Tribunal (FTT) decision in Berkshire and Others. This follows on from the case of Bridport and West Dorset Golf club, in which the CJEU found that the UK had incorrectly applied VAT to certain supplies made to visitors of non-profit making members’ golf clubs and other non-profit […]

Published: 23/06/2016

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Changes to VAT Notice 733: Flat Rate Scheme for small businesses.

HMRC have recently updated their Flat Rate Scheme Notice 733, changes have been made to the guidance on selecting the appropriate sector rate. Previously HMRC had a whole paragraph (4.4) dedicated to ‘business activities that are the source of common enquiry’ with advice on which trade sector to choose. Noting that if you act as […]

Published: 17/06/2016

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Partial Exemption Special Method

A recent First-tier Tribunal case Dynamic People Limited v HMRC  [2016] UKFTT 229 (TC)  brought up an interesting challenge to HMRC’s approach to VAT groups and a special method for partial exemption agreed by them. The method used floor space to determine the taxable, and therefore, recoverable portion of input tax. When the method was agreed the company was not a member […]

Published: 04/05/2016

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Registration and Deregistration Thresholds

  HMRC have issued a new version of VAT Notice 700/11 : ‘Cancelling your registration’. It contains more detailed information on how to cancel your VAT registration using the online service. Interestingly, the supplement to the Notice has the old registration and deregistration limits! The current threshold for registration is shown as £82,000 and for deregistration as £80,000. Both […]

Published: 04/05/2016

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