May Newsletter from The VAT Consultancy
Under the Spotlight:
HMRC Tax evasion clampdown on restaurants
In the latest of a series of campaigns on tax evasion, HMRC are focusing on restaurants. As Karen Mulcahy investigates, its now even more crucial that these businesses look at the VAT treatment of their supplies.
Read the blog.
Webinars
We launched our new Webinar (online seminar) service at the beginning of the month with two successful events: Managing VAT Cashflows and Managing VAT for Academies. If you weren’t able to attend then here’s your chance to listen again. Simply click on the link and then the “playback” button:
Managing VAT Cashflows: listen here
Managing VAT for Academies: listen here
We are currently putting together a programme of webinars for the rest of the year, including quarterly updates for accountants, covering a broad range of VAT and customs duty issues. Please let us know if there is a specific issue you would like us to cover, email us: vat@thevatconsultancy.com , we would appreciate your feedback.
Our next webinar will be in June with Director Julie Park who will be talking about the latest Customs Duty issues. We will be sending out invites soon!
This month on The VAT Blog
Opportunity to claim remains
Following the ECJ decision in the German case of Manfred Bog and Others The VAT Consultancy has been advising a number of businesses on what should be done next.
Read the blog.
Cashflow problems are a “reasonable excuse” for late payment of tax
A recent Tribunal Case has ruled that cashflow problems do count as a “reasonable excuse” for late payment of tax. John Crawford highlights the opportunities for avoiding penalties.
Read the blog
Consider what you are paying for!
If your business makes charges to customers or prospective customers but nothing is actually supplied in return for those charges, you may be overpaying VAT. Karen Mulcahy raises awareness on this.
Read the blog
Revised deadline for EU 8th Directive Claims
In accordance with the VAT package measures which took effect from 1 January 2010, EU companies wishing to reclaim EU VAT under the 8th Directive, now have 9 months from the end of the calendar year they are claiming for, in which to submit their claim.
The deadline therefore for submitting a claim to recover EU VAT incurred on costs in 2010 is 30th September 2011.
We have a specialist EU VAT recovery service will help you or your clients maximise EU VAT recovery with minimum impact on resources and guarantee savings. Find out more or get in touch with Peter Bradshaw, Head of International VAT Recovery.
HMRC News Round-up
This contains details of the changes affecting use of UK VAT registration numbers for intra-EU supplies of goods not arriving in UK.
VAT Notice 727/2 – Bespoke Retail Schemes
This notice has been updated and replaces the previous version in June 2006 and any subsequent updates.
This provides an update on the tables for the simplified method of calculating VAT on private use of company cars, dealer demonstrator vehicles and rental cars to take into account changes to the standard rate of VAT.
VAT zero rating: splitting of supplies: comments on Draft Legislation
Following the Draft Finance Bill 2011 Clauses published on 9 December 2010 included those for a VAT Supply Splitting Measure. HM Revenue & Customs received a number of comments on the scope of the Measure and responded in a letter dated 25 March 2011.
We are happy to provide further advice and guidance on specific issues in light of this draft legislation.
Notice 8 – Sailing your pleasure craft to and from the UK
This is a revised Public Notice
Details of changes in the VAT treatment of natural gas and electricity.
Supplement to Notice 700/1 and 700/11
New VAT registration and deregistration thresholds effective from 1 April 2011.
Notice 179 – Motor & heating fuels: general information and accounting for Excise Duty & VAT
This notice has been updated and replaces the previous version in January 2011 and any subsequent updates.
VAT Notes No 1 2011 Budget Supplement
HMRC’s quarterly notes following the Budget
PE guidance for Insurance companies (PDF 144K)
Jointly created by HMRC and the Association of British Insurers (ABI) this document provides guidance on creating Partial Exemption Special Methods (PESMs) for the insurance sector.
In other news:
Whether adviser fees are subject to VAT
There has been some coverage of this in the press recently, including this article in the FT:
“Whether adviser fees are subject to VAT”.
We are monitoring the on-going confusion with Financial Advisors and the new arrangements under the RDR (Retail Distribution Review) and will keep you updated. . This is an issue that has at its core a subject that affects many industries outside financial services, namely when is there an intermediary service versus an advisory or advertising type service.