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
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Advisory Fuel Rates from 1 September 2020
HMRC has updated its advisory fuel rates tables. The new rates apply from 1 September 2020. There are tables for the advisory fuel rates from 1 March 2019. Although HMRC says “These rates only apply to employees using a company car.” it seems reasonable to use them to calculate the VAT recoverable where mileage rates are paid. To calculate the VAT divide the amount by six – … [Read more...] about Advisory Fuel Rates from 1 September 2020
Eat out to help out – discount for diners
Beware when accounting for VAT on the discounted sales in August 2020 as the payment from the government is likely to be counted as part of the payment for the meal. If this is right, and we are waiting for guidance from HMRC, the money received will have to be added to takings when calculating VAT due to HMRC. … [Read more...] about Eat out to help out – discount for diners
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
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