Accounting for VAT on unfulfilled supplies

What is an unfulfilled supply? It is defined by HMRC as: “… where a customer doesn’t use a service or collect goods … they have paid for.” Why is this important? Until now, December 2018, HMRC allowed the VAT treatment of the payments received to be changed. The supplier could recover, from HMRC, any VAT it accounted for on an advance payment. … [Read more...]

Budget 2017 and VAT

There was very little of general application, in the Autumn Budget 2017, on VAT. Before the Budget, on 22 November 2017, there were rumours that the Chancellor would lower the VAT registration limit to £20,000 following reports in newspapers that seemed to take elements from the Office of Tax Simplification (OTS) report on simplifying VAT and … [Read more...]

Fulfilment House Due Diligence Scheme

Fulfilment House Due Diligence Scheme Guidance HMRC has published guidance on the Fulfilment House Due Diligence Scheme. The guidance is based on legislation that is now in draft form. This includes the Finance (No. 2) Bill 2017 that is before Parliament at the moment and a draft statutory legislation. The draft statutory instrument is the … [Read more...]

Is HMRC the Best Place to Get VAT Advice?

Is HMRC the Best Place to Get VAT Advice? Do you think HMRC is the best place to get advice on VAT? HMRC is the government department tasked with making sure VAT registered businesses account for VAT correctly. You would, perhaps, expect HMRC to know the correct VAT treatment of a supply. In a recent First-tier Tribunal decision, one of the … [Read more...]

VAT’s the difference between a care home and a hospital?

VAT’s the difference between a care home and a hospital? Recently HMRC published a Revenue & Customs Brief on its policy concerning the zero-rate for new buildings intended for a relevant residential purpose as care homes. Following the First-tier Tribunal decision in Pennine Care NHS Trust HMRC has reviewed its policy on when the zero-rating … [Read more...]

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