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 […]
Changes to Making Tax Digital for VAT from 1st April 2022
Who will be affected? Under previous guidelines, only businesses whose taxable turnover met or exceeded the VAT registration threshold were required to register for Making Tax Digital (MTD). However, HMRC have extended requirements to smaller VAT business which will come into force from the first full VAT period starting on or after 1st April 2022. […]
Changes to the temporary VAT rate for tourism and hospitality – what happens next and how you can make a VAT saving
What is the reduced rate of VAT? Last year, the Government introduced a temporary reduced rate of VAT to supplies of catering, holiday accommodation and admission to attractions (see our blog post on VAT reduction for hospitality). The reduced rate of 5% therefore applies the tourism and hospitality sector with effect from 15th July 2020. […]
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 […]
Domestic Reverse Charge for VAT: 6 Practical Steps to Prepare
If you operate a VAT registered business within the building and construction industry, you will likely have heard about the ‘Domestic Reverse Charge’ which will change the way VAT is to be collected. Initially, the new legislation was due to be implemented from 1st October 2019 however, due to a lack of guidance from HMRC, pressure from […]
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?
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. […]
What can I reduce VAT on? A breakdown for businesses in hospitality, accommodation and the tourism industry
Last week, Rishi Sunak announced a whole host of measures to help boost the economy as we start to recover from the effects of the last few months. One of these measures is a temporary 15% cut to the rate of the VAT applied to certain supplies made in the hospitality, accommodation and tourism industry, […]
Can you adjust your VAT processes to help cash flow during the coronavirus?
There are several existing schemes operated by HMRC that businesses may be able to take advantage of to help improve their cash flow during this difficult period.
Setting up your HMRC Business Tax Account
Every business should have access to an HMRC Business Tax Account whether the business operates as a sole trader, partnership or a limited company.
