Category Archives: VAT

Zero rate of VAT extended for charity digital advertising

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HMRC has changed its guidance on the VAT treatment of supplies of digital advertising to charities following extensive discussions led by the Charity Tax Group. They have announced that the zero rate of VAT is applicable to a range of digital advertising services when supplied to charities. There is a zero-rate of VAT for certain […]

VAT refund rules reforms and Public Sector

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The Treasury has published a consultation document on reforms to the VAT refund rules. The government departments, devolved administrations, the NHS and Highways England are eligible for VAT refunds under Section 41 of the VAT Act 1994 Under the current VAT refund rules. However, unlike commercial organisations, public sector organisations do not carry out business […]

Changes to VAT on imported goods: HMRC introduces a new model

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HMRC has introduced changes to the VAT on imported goods from 1 January 2021. The government will introduce a new model for the VAT treatment of goods arriving in Great Britain from outside of the UK. The changes will ensure to treat goods from EU and non-EU countries in the same way. They will also […]

UK Tax System: OTS recommended measures to simplify VAT

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The Office of Tax Simplification (OTS) has outlined a range of measures intended to help simplify the UK tax system. The OTS stated that the UK tax has become ‘highly complex’, and has ‘not kept pace with changes in society’. As such, in its report, the OTS has recommended 23 measures intended to simplify VAT. […]

VAT flat rates reduction

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HMRC has reduced VAT rates for hospitality and the flat rate scheme. VAT flat rates have been reduced for catering, accommodation and pubs in light of the government’s temporary VAT reduction. As a consequence of the temporary reduction in the VAT rate from 20% to 5% in the hospitality sector, the flat rate percentages used […]

UK chancellor announced new measures -a plan for jobs

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UK chancellor Rishi Sunak has announced new measures “plan for jobs” including bonuses for employers, VAT and stamp duty cuts, home improvement vouchers and eating-out discounts. The finance minister made his summer statement or ‘mini-budget’ in parliament on Wednesday. Today the Chancellor announced the introduction of the Job Retention Bonus. This is a one-off payment […]

Overseas VAT claims delayed: Covid-19

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The tax authority has stated that VAT claims submitted under the Overseas Refund Scheme will be subject to delays. HMRC has admitted that changes to its working practices, as a result of the pandemic, have resulted in delays in processing and refunding VAT claims. The delays relate to payments due to overseas businesses that are not […]

Tax consultation deadlines extended: Covid-19

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HMRC and the Treasury have extended their tax policy consultation deadlines. They have set out revised timelines for tax policy consultation and other work in the light of the current Covid-19 crisis. Government has extended the deadlines in order to allow more time for feedback but has declared that all planned reforms will still go […]

Making Tax Digital for VAT

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HMRC has revealed guidance to check when a business must follow the rules for Making Tax Digital for VAT. HMRC has announced that due to coronavirus (COVID-19), the businesses can delay (defer) any VAT payments due between 20 March 2020 and 30 June 2020. If they choose to defer a VAT payment, they will have […]

VAT Payments Deferral: Coronavirus

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    HMRC has announced temporary changes to the VAT payments due between 20 March 2020 and 30 June 2020 to help businesses manage their cash flow. Businesses that have been affected by the COVID-19 pandemic and are seeking to make use of the VAT deferral have been urged to cancel their direct debits ‘as […]