VAT on e-books likely to be reduced

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Currently in the UK most physical books are sold with 0% VAT and most e-books are sold with 20% VAT.   Until Brexit has actually completed, the UK remains part of the EU wide VAT system.  It is therefore of interest that MEPs are to vote on a EU Commission proposal to reduce the rate of […]

Should you charge VAT when supplying a charity?

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Generally speaking VAT registered business have to charge 20% VAT on all supplies (sales) that they make.  For certain categories of supplies (e.g. energy saving for residential property) the reduced rate of 5% applies.  For yet other goods (e.g. most uncooked food) the zero rate applies. When supplying another VAT registered business, the VAT charged […]

New 16.5% VAT Flat Rate for service-based businesses

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It was announced in the Autumn Statement that from 1st April 2017, “businesses with limited costs, such as many labour-only businesses” will have their VAT flat rate percentage increased to 16.5%. HMRC refers to such businesses as “a limited cost traders”. For such businesses this will remove the benefit of being on the Flat Rate […]

Uber case – does this affect you?

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The crux of the recently highly publicised Uber case is the question of who is supplying the end client. Uber argued it was the drivers supplying the end client:  Client buys service (transport) from driver; driver buys service from Uber (logistics).  (Uber just an agent) The Employment Tribunal found that it was Uber supplying the […]

Do you need to register for VAT outside of the UK?

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If you supply goods or services to businesses outside of the UK you need to consider carefully your UK VAT position.  We have a factsheet VAT on International Transactions and would be happy to have a further discussion on this (contact us here). But having sorted out the UK situation, that is not the end […]

VAT reclaim on cars

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There is a general rule barring VAT claims for input tax relating to cars.  However two recent cases have highlighted that a company can in certain circumstances claim back VAT input tax on cars bought and used solely in the business.  This will be unusual and will be very much the exception to the rule. […]

Appeal those surcharges – better than 50:50 chance of winning!

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Default surcharges are penalties raised by HMRC mainly in relation to late VAT returns and payments.  These are raised by computer automatically based on facts.  When a real life HMRC officer gets involved and hears a traders case, more than half surcharges reviewed are cancelled.  If you receive any penalty, or indeed any letters from […]

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