No penalties for late filing of first MTD VAT return

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HMRC have said that businesses will not be penalised for late submission of their first MTD VAT return. They added: ‘Although we will not penalise them, they will receive a letter from us telling them that they missed the deadline and asking them to take action.’ An HMRC press spokesperson confirmed this was because of […]

Company Officers jointly and severally liable for VAT penalty

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The decision in a recent tax tribunal case reminds us that directors and other company officers may be personally liable for VAT penalties of their company. The recent case involved a penalty for late registration for VAT where the threshold had been exceeded. Three conditions must be satisfied before the liability for a penalty payable […]

New VAT rules for the Construction Sector

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Under new rules due to come in on 1 October 2019 builders, sub- contractors and other trades associated with the construction industry will have start using a new method of accounting for VAT. Under the new rules, supplies of standard or reduced-rated building services between VAT-registered businesses in the supply chain will not be invoiced […]

Claiming VAT on overpayments

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A recent VAT case confirmed that the amount paid by a customer will usually be the amount subject to VAT, even if the customer has paid more than the advertised price. Incredibly the facts of the case revealed that National Car Parks (NCP) have received over £2.5 m in overpayments due to car park machines […]

HMRC remind businesses that barter or contra transactions are subject to tax and VAT

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HMRC have reminded business that barter or contra transactions (supplies with no money payment) are subject to tax and VAT. All receipts arising from contra, barter or reciprocal arrangements must be valued at the money’s worth of the goods and services exchanged. The corresponding expenses should also be brought into account. If both businesses involved […]

VAT bad debt relief on stolen takings

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Generally if a business is never paid for its goods or services, it either does not have to hand over VAT or can reclaim VAT that has been paid. However, if an employee steals money from the till for example, the VAT still has to be paid because the business has been paid for its […]

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