Archive for the ‘VAT’ Category

VAT Hot Topics

Posted on: January 29th, 2018 by David Holden No Comments

Retailers who sell food – hot or cold? VAT charged or not?

There are two key questions to ask when deciding whether the sale is standard rated or zero rated.

  • Is any supply of food for consumption on the premises on which it is supplied; and
  • Is any supply of hot food provided for consumption off those premises?


For whom does VAT Toll?

Posted on: January 11th, 2018 by Liz Maher No Comments

Well the good news is that it doesn’t now apply to any tolls paid by commuters – business or personal – crossing on the Severn Bridges from the 8th January 2018. (more…)

VAT Alert: Charities will NOT be excluded from Making Tax Digital roll out

Posted on: November 14th, 2017 by Sarah Case No Comments

Broomfield & Alexander have been working extensively with our clients to move them to accounting software systems. This is in preparation for April 2019 when HMRC will expect VAT registered businesses to be able to pass their VAT return data across directly to HMRC in a digital format.

Liz Maher from Centurion VAT Specialists team – who works with us in supporting our Charity Sector clients – has passed news to us of a significant VAT change which will impact across the sector. (more…)

VAT Flat Rate Scheme – are you a winner or loser?

Posted on: July 6th, 2017 by Leighton Reed No Comments

In the last few weeks I have seen two businesses that have been using the VAT flat rate scheme that would be far better off outside the scheme. Why is this? The flat rate scheme is a simplification introduced by HMRC to help small businesses account for VAT more simply. However as a simplification, it is not the best route for every business. (more…)

BREXIT – What now?

Posted on: January 26th, 2017 by Leighton Reed No Comments

Theresa May’s declaration that the UK is to leave the single market brings with it a whole host of VAT and Customs Duty challenges which we recommend that businesses start planning for now, as there will be increased compliance and complexity to deal with. (more…)

Brexit and VAT

Posted on: July 7th, 2016 by Liz Mounfield No Comments

In the recent referendum the UK, including Wales, voted to leave the EU. While nothing much is expected to happen in the short term regarding VAT, once the Government has triggered Article 50 of the Lisbon Treaty to formally confirm that we are leaving negotiations will begin in earnest to agree the terms and process of our exit. It is said that negotiations are likely to take place over a 2-year period but possibly they may take more or less time than that, we just don’t know yet.

During the period of negotiation and until they are concluded, the UK is still part of the EU and accordingly we would expect that it must continue to be bound by EU VAT legislation, European Court Judgements on VAT and also reporting requirements, including VAT returns, ESL returns for both goods and services and Intrastat returns.


Diversification in agriculture: Is it time to branch out?

Posted on: May 19th, 2016 by Sarah Curzon No Comments

Sarah CurzonWith income and margins continuing to be squeezed in the agricultural sector for a number of reasons, many businesses are looking to diversify to generate additional income.

Common examples of diversification include the selling of produce, whether primary or value added and providing leisure accommodation either in the main farmhouse, converting unused buildings or developing a campsite.

The benefits of diversification are the greatest if it can be achieved with minimal increase to the cost base.  However, it is important to get some key aspects right at the start to minimise risk to the overall operation.


Rewards-based Crowd Funding: Why Start-ups needs to understand the VAT aspect

Posted on: August 10th, 2015 by Liz Mounfield No Comments
Liz Maher, Director, Centurion VAT

Liz Maher, Director, Centurion VAT

There’s no shortage of survey commentary in the business pages through the year to evidence how small businesses fear the complexities of the VAT legislation. A recent commentary from a Direct Line for Business commissioned survey suggested that around one in ten respondents had limited sales to ensure they remained below the VAT registration threshold.

Continuing pressures on accessing funding for small and medium sized business has seemingly added a further complication – with the growth in Crowd Funding as a route to raise monies to finance a business idea, creation or production.

For the vast majority of crowd funding projects where a share in the equity is the supply for the consideration of funding provided then nothing significant has changed from the VAT perspective. The challenge is in the area of “reward-based” crowd funding where in return for the finance provided the business enters into a promise to deliver some tangible benefit to the funder – some goods to be generated by the business in the future, a discount or voucher package perhaps?


VAT & Direct Marketing Costs – Why Charities need to act now

Posted on: July 28th, 2015 by Liz Mounfield No Comments
Liz Maher, Director, Centurion VAT

Liz Maher, Director, Centurion VAT

With the holiday season upon us it’s all too easy to miss out on the “minutiae” of VAT management I appreciate, so here’s a quick postcard to highlight an issue which could come back to haunt a charity if not addressed.

HMRC have issued a new policy paper to outline the VAT treatment of Direct Marketing Services using printed matter which is a long way of saying “mailshots”.

The problem springs from the fact that whilst the production of printed matter is a supply of goods which can benefit from the zero rate of VAT on the supply of a charity leaflet or newsletter, HMRC clearly see the services of sending that mailshot out as a service subject to the standard 20% VAT charge. The issue is that often all of these activities are bundled together and some suppliers had treated the whole supply to the charity as being zero rated whereas HMRC believe it should have been standard rated in total.


VAT update: International trading

Posted on: February 12th, 2015 by Liz Mounfield No Comments

Our guest author, Andrew Norris from Centurion VAT, looks at recent changes to VAT for those exporting and undertaking international business activities.

1st January 2015: Significant changes to VAT rules on digital services in the EU but what about Norway and South Africa?

Without any fanfare the significant changes to how VAT is to be accounted for on digital services (broadcasting, telecommunications and e-services) supplied to private consumers in the EU was introduced on 1 January. Just after Christmas HMRC issued guidance see link here and a flowchart to help businesses decide if they are affected by the rule changes.

There has been concern raised by micro-businesses and while HMRC still require a UK VAT registration even if sales are below the UK VAT registration threshold, it has conceded that micro – businesses will not need to account for VAT on UK sales as long as they remain below the threshold. In addition, until 30 June 2015, micro-businesses can base their ‘customer location’ VAT and accounting decisions on information provided to them by their payment service provider. We await to see whether any more concessions will be granted to micro-businesses going forward.