VAT & Duties

Claiming back pre registration VAT

May 23rd 2019

It is possible to reclaim VAT you have paid on any business purchases before you have subsequently registered for VAT. In fact, once you have registered your business for VAT the first thing you should consider is the possibility of reclaiming input tax on purchases of goods and services prior to registration.

VAT flat rate scheme

May 19th 2017

The VAT flat rate scheme aims to simplify the tax affairs of smaller businesses by allowing them to work out the VAT that they pay over to HMRC by applying a flat rate percentage to their VAT-inclusive turnover, rather than working out the difference between the VAT that they have charged and the VAT that they have incurred.

Changes to the VAT flat rate scheme

February 1st 2017

The VAT flat rate scheme is an optional simplified accounting scheme for small businesses. The scheme is available to businesses which are eligible to be registered for VAT and whose taxable turnover (excluding VAT) in the next year will be £150,000 or less. Once in the scheme, a business can remain in it as long as its taxable turnover for the current year is not more than £230,000.

Are you affected by changes to the VAT Flat Rate Scheme (FRS)?

December 9th 2016

HMRC is to introduce an additional test that will determine the flat rate percentage used by traders. It would seem that HMRC presently considers the benefits obtained by certain businesses to be excessive and not in accord with the intentions of Parliament.

Claiming back pre registration VAT

October 6th 2016

The good news is you can reclaim VAT added to certain expenditure that was paid out prior to your business registration for VAT. HMRC’s instructions on this issue confirm.

Claiming back VAT on a vehicle purchase

September 2nd 2016

Generally speaking, the purchase of any vehicle where there is any element of private use means any reclaim of VAT may be restricted. HMRC’s website offers the following guidance:

Vehicle Excise Duty changes from April 2017

September 16th 2015

If you are concerned about the annual cost of a VED license you may want to consider your car replacement options before the new VED regime starts April 2017. It will apply to all cars first registered after 1 April 2017.

Reclaiming VAT input tax prior to registration

June 17th 2015

Once you have registered your business for VAT the first thing you should consider is the possibility of reclaiming input tax on purchases of goods and services prior to registration. This article summarises the issues you will need to consider for the two categories: goods and services.

Snugglebundl wins appeal

February 6th 2015

In a recent case considered by the courts a company that sold a baby lifting blanket appealed a ruling by HMRC that the supply was standard rated for VAT purposes. For the company this placed them at a competitive disadvantage as retail outlets selling the item were required to charge VAT at 20%.

VAT - pick and mix

August 19th 2014

There are a number of VAT schemes that benefit registered businesses. For example:

Cash accounting & Annual accounting