VAT

VQOTW: ONLINE TRADERS SELLING TO GERMANY USING AMAZON

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My client is an online retailer, selling through Amazon and other online marketplaces. They have recently received correspondence from Amazon with regard to the online sales they make to customers in Germany. It appears that Amazon is insisting that my client must VAT register in Germany if they want to continue to sell to German customers via Amazon. Can you advise what has prompted this action?

VQOTW: CHANGE IN POLICY FOR RETAINED DEPOSITS

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My client and her husband run a boutique hotel in partnership. Due to the location and quirky nature of the décor, they are increasingly getting requests to host celebrations and parties in addition to overnight accommodation. As the financial outlay in preparing and staging the events can be quite considerable, the client asks for a 25% deposit up-front, which is non-refundable if the event is cancelled. Please, could you advise on the VAT treatment and time of supply implications of these deposit payments?

VQOTW: VAT VOUCHER CHANGES

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My clients own a hair and beauty salon and have recently started to issue their own gift vouchers. I understand that the VAT treatment depends on the type of voucher, and also that there have been some recent changes. Please, could you clarify?

VQOTW: SALE OF BUSINESS ASSETS

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My client is changing his business policy with respect to vehicles so that in future vehicles will be leased on contract-hire instead of owned by the company. Several employees are interested in buying the old vehicles. Will he need to charge VAT on the sale of those vehicles to the employees?

Deregistering for VAT

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These days VAT thresholds are the subject of much speculation, with the Government concerned that many business owners deliberately choose to stay below the VAT-registration threshold.

Limiting your ambition in this way might seem counter-intuitive – surely you want your business to get as big as possible?

VQOTW: WHAT DO HMRC MEAN BY TAXABLE TURNOVER FOR MAKING TAX DIGITAL

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My client works through her own limited company, providing public relations and marketing consultancy to businesses in the UK and all over the world. The business is VAT registered in the UK on a voluntary basis; is she going to be affected by Making Tax Digital?

VQOTW: AGRICULTURAL FLAT-RATE SCHEME

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We have a client who runs a plant nursery and claims that he is exempt from registering for VAT as the business falls under market gardening. I have searched HMRC’s website but can find nothing on this subject. Is he correct?

VAT Question of the Week: Input VAT – Too Late to Claim?

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My client has been approached by a builder, who carried out repair work to the client’s factory some years ago. The builder was late registering for VAT and is now looking to issue VAT only invoices to my client for the supplies in question. I have several concerns: is the supplier liable to account for the VAT if the supplies were made more than 4 years ago? Is my client obliged to pay and if so can he now recover the VAT given that the original invoices were dated more than 4 years ago?

Vat Question of the Week: Sale of Trading Premises

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My client, a small owner-managed company, purchased five-year-old freehold premises to trade from in June 2017. The total cost of the premises and refurbishment was 180K + VAT, which the company reclaimed in full in the 06/17 period, and the company has occupied it since for its engineering business. The business has always been fully taxable.

VAT Question of the Week: Hotel Deposits

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My client frequently has to stay in hotels for business. The hotel takes a deposit at the time of booking with the balance of the cost paid over when the stay takes place. Sometimes my client’s plans, or those of his customer, change and he cancels the booking and the hotel keeps the deposit paid. Some hotels send a VAT invoice covering the amount of the deposit they retain after the cancellation and some say that they cannot issue a VAT invoice because VAT is not applicable to the amount they have retained. Which is correct for VAT purposes?

MTD for VAT-registered businesses

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Obligations from 1 April 2019 onwards.

Although the Making Tax Digital (MTD) regime has suffered several setbacks and delays, MTD for VAT remains on course to take effect from its planned implementation date of 1 April 2019.

Under the scheme, VAT-registered businesses are required to maintain digital records, complete the VAT return from the digital records and send it electronically to HMRC.

Read the full article here.

FREE AUTO ENROLMENT & XERO ACCOUNTS SEMINAR (AND LUNCH)

About Us, Accounting, Businesses, National Insurance, Payroll, Pensions, Personal Tax, VAT, Xero l

xero-logo-hires-RGBPension-PeopleAuto Enrolment – everything you need to know about it and the lack of time you have to implement it!

Xero Online Account – How to keep your books sitting on a beach in Hawai whilst drinking cocktails!

Morrell Middleton have teamed up with Ardent Financial advisers to discuss the in’s and out’s of implementing the Governments solution to the pensions crisis – Auto Enrolment.

The rules will apply even to individuals who employ just one person, such as a nanny or gardener. Employers will have to enrol workers who are classified into 3 areas, Entitled Worker, Non-Eligible Jobholder and a Jobholder. Who is which and what you have to do for them is all in our notes!

HMRC announces £45m to improve customer service

Businesses, Corporation Tax, National Insurance, Personal Tax, Tax/VAT Cases, VAT l

angry-Homer-phoneHMRC has announced today that it is allocating £45m to improve customer service, as it released statistics  indicating a prolonged decline in the quality of its call handling.

The allocation will pay for around 3,000 additional staff to join customer service teams, alongside around 2,000 staff who are being moved over from other parts of HMRC to help with the tax credits deadline and letters and forms.

Why is an accountant needed?

Accounting, Corporation Tax, Growth, Tax/VAT Cases, VAT l

HectorWe are often asked “why is an accountant needed?” and “how do you provide value for money?”.

In the age of computerised accounting packages and online platforms for completing returns this is a reasonable question.

A big part of the answer is our knowledge of legislation, and how we can apply our knowledge to benefit those who we work with. A great example of this has been highlighted recently by Accountingweb, where HMRC have changed an interpretation of long standing VAT legislation which could have a significant impact on businesses who don’t take alternative advice, costing them £’000’s.

3 Months Free with Xero accounts and Morrell Middleton

About Us, Accounting, Businesses, National Insurance, Payroll, VAT, Xero l

xero-logo-hires-RGBAs one of Yorks leading Xero accountants we have teamed up with them to offer your first 3 months subscription FREE to existing and new clients of our accountancy practices.

Xero is the UK’s best Online accounting solution so for those people who operate on the move, have different locations for staff or just want less hassle in their book keeping lives then this may be a solution for you.