Category Archives: VAT

£20 million SME Brexit Support Fund

The UK government has opened the £20 million SME Brexit Support Fund for applications from 15 March. This support fund will support small businesses with reforms to trade rules with the EU. Smaller businesses can apply for grants of up to £2,000 to help them adapt to new customs and tax rules when trading with […]

Finance Bill 2021: Details Published

The government has published the details of the Finance Bill 2021 on 11 March 2021. The Bill highlights the important law measures(announced in the recent 2021 Budget) set to come into legislation. Chancellor Rishi Sunak announced the following measures in his budget speech: an extension of the stamp duty holiday in England a super-deduction capital […]

Budget 2021: Major highlights at a glance

Chancellor Rishi Sunak unveiled the contents of his Budget 2021 in the House of Commons on 3rd March. He announced the UK government’s tax and spending plans for the year ahead. However, the focus on helping business and jobs through the pandemic and supporting the UK’s long-term economic recovery will remain unchanged. Here is a […]

VAT Deferral New Payment Scheme: New online service

HMRC has announced a new online VAT Deferral New Payment Scheme for the businesses that deferred VAT payments last year. Businesses can now pay in smaller monthly instalments. HMRC said that If businesses deferred VAT payments due between 20 March 2020 and 30 June 2020 and still have payments to make, they can: pay the […]

Domestic VAT reverse charge updates

The domestic VAT reverse charge for construction services will come into effect on 1 March 2021, according to HMRC. It was initially scheduled to come into effect from 1 October 2019 but was postponed until October 2020. The VAT reverse charge for construction is an extension of the Construction Industry Scheme (CIS).It applies only to […]

Zero rate of VAT extended for charity digital advertising

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

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

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

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

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 […]