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
revenue & customs brief
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
VAT on payroll services
HMRC has published Revenue and Customs Brief 2020/16 to confirm its view that payroll services are subject to VAT. The reason for the release of the Revenue and Customs Brief appears to be the outcome of a decision of the Upper Tribunal concerning costs in a appeal by Cheshire Centre for Independent Living. Cheshire Centre for Independent Living provides a number of services … [Read more...] about VAT on payroll services
Early termination payments
On 2 September 2020, HMRC published Revenue and Customs Brief 2/2020 announcing a change of policy in how early termination payments are to be treated for VAT. An early termination payment is sometimes applied when a customer opts to leave a fixed term contract before the end of the fixed term. The CJEU’s decisions in two cases have led to HMRC changing its policy. The CJEU … [Read more...] about Early termination payments
Temporary zero-rating for personal protective equipment
Supplies of personal protective equipment are now zero-rated. The zero-rating only applies to supplies made from 1 May 2020 to 31 July 2020. The PPE has to meet the specification set down by Public Health England. The guidance, COVID-19 personal protective equipment (PPE), was originally published on 24 April 2020 and updated 3 May 2020. Products covered by the zero rate … [Read more...] about Temporary zero-rating for personal protective equipment