VAT – a timely reminder to obtain evidence of export

The export or removal of goods from the UK can be treated as a zero-rated supply for VAT purposes but only when the relevant evidence of export has been obtained in accordance with the guidelines set out by HMRC, which may differ depending on the export type.   The evidential requirements are set out in […]

A change to the way HMRC manages the clearance of central assessments

HMRC have introduced a significant change to the way in which it manages the clearance of centrally issued assessments and it can catch a taxpayer out. When taxpayers miss the deadline for filing a VAT return, a ‘central assessment’ is raised automatically by HMRC’s system. This is also known as a ‘VAT notice of assessment […]

What is the UK Internal Market Scheme (UKIMS) and how do you register?

Following the implementation of the arrangements outlined in the Windsor Framework, an enhanced UKIMS has been established to replace the existing UK Trader Scheme from 30 September 2023. Goods moving before this date are able to be declared as ‘not at risk’ under the UK Trader Scheme. After 30 September, the UK Trader Scheme will […]

What is the Windsor Framework and what does it mean?

How will the Windsor Framework affect the movement of goods between Great Britain (GB) and Northern Ireland (NI)? The Windsor Framework is the culmination of ongoing negotiations which were concluded on 27 February 2023. The new Framework, which makes changes to the Northern Ireland Protocol, has been designed to enable better trading arrangements and movement […]

How to use the ‘Time to Pay’ arrangement for VAT

How to use the ‘Time to Pay’ arrangement for VAT The introduction of the new penalty regime for VAT in 2023 made it clear that HMRC believes that all VAT registered persons have a responsibility to account for and pay over the VAT that they have collected from their customers during the course of carrying […]

When should I register my company for VAT?

When should I register my company for VAT? Sorting out your tax registrations is one of the first things to tick off your to-do list as a new business owner. But knowing when to register for things like value-added tax (VAT) can be a confusing process for new entrepreneurs.Here’s a straightforward summary of what you […]

Have your say on the proposed introduction of the new Online Sales Tax

HMRC is seeking consultation on its proposal to introduce an online sales tax (OST), which it believes could address imbalances between the taxation of the retail sector businesses operating wholly online compared to those operating in store specifically in relation to funding business rates reductions for those operating through physical outlets.  It should be noted […]

VAT Reduction for Hospitality: how does it actually work in practice?

In the Budget in early March, Rishi Sunak announced that the VAT rate cut, from 20% to 5%, introduced in July 2020, which saw certain businesses working within the hospitality sector benefiting, was to be extended for six more months. What does the 5% VAT reduction apply to? The temporary reduction applies to businesses who […]

Postponed Import VAT Accounting Scheme: how to access your import VAT statements

Since 1 January 2021, following the ending of the transition period, VAT is now payable on imports coming into the UK from anywhere in the world, including imports from the EU.   There are a number of ways that payment of the import VAT can be managed by businesses. One option introduced by HMRC, which applies […]

How do I repay the VAT I deferred because of COVID?

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The option to defer VAT payments between 20 March and 30 June last year was welcomed by many businesses as it freed up much-needed cash for them during the lockdown. In order to take advantage of this scheme, businesses either didn’t make the payment or they cancelled their direct debit to prevent the payment being taken automatically.   […]