Labels: VAT
posted by Angus at
12:37
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Labels: VAT
posted by Angus at
15:11
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Labels: VAT
posted by Angus at
12:41
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The change in the Standard Rate of VAT from 17.5% to 15% is temporary - it lasts from 1 December 2008 to 31 December 2009.
But how do you change your computer system to reflect the change in the legislation from next week?
We have a worksheet available to explain the temporary changes you need to implement to correctly record your VAT liabilities.
At the moment, we only cover Sage and Quickbooks, but TAS Books will be added later this week, and other programs may be added later. If you have specific questions, please contact Angus.
Labels: VAT
posted by Angus at
18:55
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Labels: VAT
posted by Angus at
14:47
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For instance, a supply of goods or services to a company in France should include a statement such as, "This an intra-community supply".
Where the supplies are exempt, it should read something like, "This supply is exempt from VAT."
Similar rules also apply for the second-hand margins scheme, the reverse charge and the Tour Operators Margin Scheme.
Labels: VAT
posted by Angus at
12:35
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In its statement, HMRC said that businesses “must ensure that all reasonable steps are taken to get their VAT Return and any payment to Revenue and Customs on time”.
It continued: “However, VAT Returns and payments that are delayed by postal disputes will be viewed sympathetically.”
On the issue of surcharges for late payments, HMRC said: “There will be no liability to surcharge where the recent postal dispute has been the cause of the delayed payment and you usually pay by cheque.”
HMRC is reminding businesses that VAT returns can be paid electronically using BACS, Direct Credit, CHAPS and Bank Giro. Any businesses wishing to pay this way should contact their banks.
If a return has already been sent through the post along with any payment, businesses are not expected to take a duplicate to their local VAT office, but should wait for the return and payment to be delivered in the normal manner.
Where there is a localised strike or disruption, HMRC said that:“You may, exceptionally, take your VAT Return and payment to your local office. If you do this please ensure that your return and payment are submitted to the local office in the pre-paid envelope which Revenue and Customs has provided with your return. We do not recommend you do this if you wish to lodge a repayment return.”
In the case of repayments, HMRC said that it “will allow affected businesses to fax their repayment returns to VCU”. The fax number is 01702 366839. This facility will be available only until HMRC considers that the need for it has passed. If a business faxes its return, it should not then send in the original.
Businesses experiencing late payments because cheques from customers are delayed in the post “must account for VAT at the normal time”.
Labels: VAT
posted by Angus at
13:09
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Labels: VAT
posted by Angus at
12:07
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The sale of a fishing boat is zero rated so long as the vessel is: -
(1) Has a gross tonnage of over 15 tons, and
(2) Is neither designed nor adapted for recreational or pleasure purposes
VAT 1994, Sch 8 Group 8 Item 1 and Note 1A; SI 1995/3039
The sale of the licence or quote is standard rated. Labels: VAT
posted by Angus at
10:57
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In the past, if the honest tax payer made an error in excess of £1m VAT, or an amount which represented 30% or more of the correct tax for the return period, they were liable to a misdeclaration penalty. The taxpayer was automatically exculpated in full if they voluntarily disclosed the error to HMRC or if they had a ‘reasonable excuse’.
The joining of the revenue and VAT arms of HMRC has seen the introduction of a single set of penalties to cover income tax, PAYE, corporation tax, VAT and NI contributions. This was included in the finance bill 2007 and will shortly become law, coming into operation for return periods commencing after 31 March 2008. At the same time, we will see the introduction of the ‘compliance spectrum’, which grades error according to the behaviour of the taxpayer.
Taxpayers will have to convince an HMRC officer that their error is innocent to which no penalty should be charged. This puts a lot of power in the hands of the officer responsible for supervising the taxpayer’s affairs. I will leave you to decide whether this is a good thing. If this fails, taxpayers can no longer achieve automatic exculpation by having made a voluntary disclosure. Also the ‘reasonable excuse’ statutory defence disappears altogether. For professional advisors this means the end of settled case law.
It is expected that not many officers will accept mistakes as innocent errors. Additionally under the new starting point for negligent penalties is 30% of the amount of tax due (an increase from the old misdeclaration penalty of 15%), following which the taxpayer can plead that the penalty should be mitigated down - again not great news for taxpayers.
These changes mean taxpayers who makes a full unprompted disclosure of an error no longer has an automatic nil liability to a misdeclaration penalty. Inevitably there will be litigation on issues such as an officer’s decision on where the taxpayer’s conduct falls under the ‘compliance spectrum’ or the level of mitigation to be allowed following a disclosure in order to re-establish the scope of what is reasonable.
The regime captures VAT registered businesses regardless of the size or the error. While there will be rights of appeal, many will lament the loss of a system where honest errors were only penalised if significant and full disclosure or reasonable excuse defences meant even those penalties could be readily avoided.
posted by Angus at
18:31
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Nicolson, Chartered Accountants, are reminding those who are renovating houses that they may be eligible to have building works charged at 5%, rather than the full 17.5% rate.
You may wish to draw your builders attention to VAT Notice 708 which has the full detail, but the key points are summarised below:
➢ The supply (is charged at the 5% rate), in the course of the renovation or alteration of qualifying residential premises, of qualifying services related to the renovation or alteration.
➢ The supply of building materials (is charged at the 5% rate)
if the materials are supplied by a person who, in the course of the renovation or alteration of qualifying residential premises, is supplying qualifying services related to the renovation or alteration, and
those services include the incorporation of the materials in the premises concerned or their immediate site.
A qualifying building is one that is a single household dwelling that has not been lived in for the past three years.
The building materials which can be supplied by your builder at 5% include most fittings' incorporated' into the building is such a way that its fixing or removal would either require the use of tools, or would result in the need for remedial work to the building, or would result in substantial damage to the good themselves. This can include fitted wardrobes, boilers, storage heaters, flooring (but not carpets), as well as the more usual supplies. You cannot obtain a reduced rate on materials you buy and install yourself, nor on 'white goods' or carpets.
posted by Angus at
17:57
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