HMRC announced the publication of updated guidance on this topic on 7 February 2022 in Revenue & Customs Brief 2/2022. The updated guidance is in HMRC's internal manuals. HMRC has revised its policy in relation to early termination and compensation payments, and it comes into effect from 1 April 2022. The guidance sets out to explain the revised policy. The explanation … [Read more...] about Early termination and compensation payments and VAT
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VAT partial exemption and Covid–19
HMRC has announced that it will allow businesses to amend their partial exemption special method if Covid–19 restrictions have affected the recovery of input tax. Under partial exemption rules the apportionment method has to be fair and reasonable. It’s possible a business’s current partial exemption method is no longer fair and reasonable, in which case they can change the … [Read more...] about VAT partial exemption and Covid–19
VAT treatment of private pregnancy scans
Following the decision of the First-tier Tribunal in the Window on the Womb (Franchise) and others [2020] UKFTT 201 (TC), HMRC has published Revenue & Customs Brief 17/2020: VAT liability of private sonography services – First-tier Tribunal Decision setting out its revised policy. The First-tier Tribunal found for Windows on the Womb having taken into account the CJEU … [Read more...] about VAT treatment of private pregnancy scans
Good news for hospitality and tourism businesses – VAT rate cut
The Chancellor announced today, 8 July 2020, that the rate of VAT for the hospitality and tourism industries will be reduced to 5% from 15 July 2020 to 12 January 2021. The Plan for Jobs 2020 paper says: "Temporary VAT cut for food and non-alcoholic drinks – From 15 July 2020 to 12 January 2021, to support businesses and jobs in the hospitality sector, the reduced (5%) rate … [Read more...] about Good news for hospitality and tourism businesses – VAT rate cut
VAT Grouping Rules
The new VAT grouping rules, which allow individuals, partnerships, etc. to join a VAT group, came into force on 1 November 2019. The Finance Act 2019, Schedule 18 (VAT Groups: Eligibility) (Appointed Day) Regulations 2019 was published on 15 October 2019. Individuals, partnerships and Scottish partnerships that control the UK bodies corporate may now join a VAT group with … [Read more...] about VAT Grouping Rules