Extension of VAT second-hand margin scheme in NI
[ad_1] Eligible vehicles purchased in Great Britain and moved to Northern Ireland before 1 May 2023 can now be sold under the margin scheme until 30 April 2024. Until 1 May 2023, businesses could account for VAT on second-hand vehicles bought in Great Britain and sold in Northern Ireland under the second-hand margin scheme. This […]
HMRC consults on draft legislation on retained EU VAT law
[ad_1] The draft legislation and explanatory note clarify how VAT and excise law should be interpreted after changes made by the Retained EU Law (Revocation and Reform) Act 2023. The government has published draft legislation in relation to retained EU law for VAT and excise ahead of potential inclusion in the next finance bill. The […]
HMRC to remove paper form for VAT registration
[ad_1] The VAT1 form will only be available to customers through the VAT helpline from mid November 2023. Over 95% of businesses, or their agents, already use HMRC’s online VAT registration service (VRS) to apply for VAT registration. HMRC wants to increase this further to speed up processing times for VAT registration applications. HMRC is […]
HMRC asks VAT businesses to prove UK establishment
[ad_1] Businesses registered for VAT at a high-volume address will be asked by HMRC to prove they are established in the UK. Online marketplaces have been liable for the output VAT from sales on their platforms by overseas traders since January 2021. HMRC believes that some non-established taxable persons (NETPs) have incorporated in the UK […]
HMRC changes central assessment process for late VAT returns
[ad_1] Central assessments may no longer be cancelled immediately upon submission of the late return. When traders miss the deadline for filing a VAT return, a ‘central assessment’ is raised by HMRC’s system. This is also known as a ‘VAT notice of assessment of tax’. A central assessment estimates the VAT liability due to HMRC […]
Agent authorisation for VAT is changing
[ad_1] HMRC will remove the functionality that allows agent authorisations for VAT to be copied across to the agent services account. VAT authorisations already copied across are unaffected. It will still be possible to copy authorisations for MTD ITSA. From October 2023, HMRC will be removing the functionality to copy across agent authorisation for VAT […]
Construction industry scheme: drop VAT compliance test
[ad_1] ICAEW’s Tax Faculty considers the proposed construction industry scheme (CIS) gross payment status (GPS) VAT compliance test is unlikely to deter organised criminal groups and should be dropped. Making contractors and sub-contractors pass a VAT compliance test to qualify for construction industry scheme (CIS) gross payment status (GPS) will increase burdens for the compliant […]
HMRC launches self-serve time to pay for VAT
[ad_1] Certain businesses can now set up a VAT payment plan online. As of 31 May 2023, VAT-registered businesses that owe less than £20,000 of VAT can set up a payment plan online. Payment plans are sometimes known as time to pay agreements. A VAT-registered business can set up its VAT payment plan online if […]
ICAEW considers extension on VAT relief for energy saving
[ad_1] The Tax Faculty expresses concerns with the expansion of VAT reliefs generally, but considers the extension of the zero rate the best option at the current time. In ICAEW REP 47/23, ICAEW’s Tax Faculty notes that VAT reliefs are not the optimal policy tool for driving behavioural change. In this case, the behavioural change […]
Drink return scheme deposits should fall outside scope of VAT
[ad_1] The Tax Faculty expresses concern that the proposed output VAT liability would fall on the wrong person. In ICAEW REP 42/23, ICAEW’s Tax Faculty expresses broad support for drink deposit return schemes (DRS) but stresses that the schemes should not create an excessive administrative burden on businesses affected by the schemes. The faculty considers […]