VAT News

From 1 January 2025 fees charged by private schools will be liable to VAT. The proposed rules are complicated, especially with regard to the anti-avoidance measures. Schools affected by the changes need to start planning now.

Form VAT484 can no longer be downloaded. Most changes to registration details must now be made online.

From 1 February 2024 the temporary zero rate will be extended to more green technologies and also to the installation of qualifying materials in some buildings used by charities.

The DIY scheme has finally been brought into the 21st century with the facility to submit a claim online and there is a helpful extension to the submission deadline.

Paper VAT registration forms are being withdrawn – nearly all applications to be made online

For VAT periods starting on or after 1 January 2023 the default surcharge regime has been replaced by a new penalty points based system. The new penalties will also apply to nil and repayment VAT returns.

VAT thresholds to remain unchanged for a further two years.

From 1 November if you have not signed up to Making Tax Digital (MTD) or been granted exemption from MTD you will not be able to file your VAT returns.

Since 1 October 2021 a special VAT rate of 12.5% has applied to certain supplies of hospitality, holiday accommodation and entry to attractions. With effect from 1 April 2022 the VAT rate on these supplies reverts to the standard rate of 20%. The normal rules apply to...

As well as reducing the rate on the installation of energy saving materials to zero the Chancellor extended the scope of the zero rate and eased the eligibility conditions.

From 1 April 2022 VAT must be charged on most early termination fees and compensation payments but dilapidation payments will remain outside the scope.

Be prepared – Making Tax Digital (MTD) will be extended to all VAT registered businesses for VAT periods beginning on or after 1 April 2022.

From 1 October 2021 a new rate of 12.5% will apply to certain supplies of hospitality, holiday accommodation and entry to attractions.

The EU’s e-commerce VAT package is introduced on 21 July – businesses selling goods and services to non-business customers in the EU need to be aware of the changes.

You can no longer file VAT returns from non MTD-compliant software.

From 1 April the process of entering data into a VAT return must be fully digital.

A small number of changes to VAT were announced in the Budget together with announcements about some major changes to come in 2022.

The Domestic Reverse Charge for the construction industry takes effect from 1 March 2021.

HMRC has second thoughts on when to apply VAT to cancellation and early termination fees. The change is no longer retrospective but HMRC announces interim approach.

If you import goods make sure you are up to date with HMRC’s latest guidance.

New guidance published on accounting for VAT in Northern Ireland from 1 January 2021

90 day deadline for notifying an Option to Tax now applies to options exercised before 31 March 2021.

VAT temporary 5% rate extended to 31 March 2021.
More time to pay deferred VAT payments.

HMRC announces that most cancellation and termination payments have always been subject to VAT, despite their previous guidance.

Temporary relief from import VAT and duty is available on PPE and medical equipment if certain conditions are met

The temporary reduction of VAT takes effect from 15 July, affected businesses should check the details.

The extended notification period now applies to Options To Tax exercised in the period from 15 February to 30 June.

The deferral period for VAT payments ends on 30 June. This means that payments due after 30 June (including for May VAT returns) should be made as normal.

The introduction of the Domestic Reverse Charge for the Construction Industry has been deferred until 1 March 2021.

Deadline for submitting a notification of an option to tax has been extended.

The zero rate will apply to many electronic publications from 1 May

Supplies of PPE made between 1 May and 31 July will be zero rated

Requirement for digital links delayed until VAT periods starting on or after 1 April 2021

HMRC announces deferral of VAT payments

HMRC has set up a helpline for businesses who may not be able to pay their taxes on time due to the impact of the coronavirus

Changes to the rules on IR35 have been deferred to April 2021

The UK may have left the EU but some recent changes to the rules on trading within the EU will apply to the UK for the rest of 2020.

From 1 November 2019 some individuals and partnerships may join a VAT group

With a no-deal Brexit on the horizon businesses that trade with the EU need to prepare for the VAT changes that will bring.

HMRC announces deferral of the introduction of the new VAT arrangements

Businesses that must be in MTD with a VAT return period ended 30 June 2019 need to prepare now, if they have not already joined MTD.

From 1 March 2019 there is a change in the VAT treatment of advance payments and deposits

With just seven weeks to go before Making Tax Digital (MTD) is introduced most VAT registered businesses need to be making their final preparations.

If there is no deal big changes will come in for importers and exporters on 30 March 2019.

A change to MOSS may help small businesses – unless Brexit intervenes.

With just over four months to go before Making Tax Digital (MTD) is introduced many VAT registered businesses need to prepare now.

VAT registration threshold unchanged until 2022. Further anti-avoidance measures announced.

VAT Notice 700/22 has been published giving guidance on MTD

From 1 June 2018 owners of public houses can no longer use an automatic 90/10 split for rents or disposals of the building.