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VAT Input Tax – Regulation 111

VAT Input Tax – Regulation 111

How to treat Input Tax: Pre-registration, Pre-incorporation and Post-deregistration claims to Input Tax under Regulation 111 ? Background Only a person who is already registered for VAT can exercise the right to deduct input tax. However, there are certain...
Electric and Hybrid cars – Tax implications

Electric and Hybrid cars – Tax implications

There are some commonly held misconceptions about the VAT breaks for businesses buying Electric and Hybrid cars, even by car dealers trying to sell a new car. Input VAT Claim rules It is not uncommon for car dealers to tell buyers that their businesses can recover the...
VAT Investigation process by HMRC

VAT Investigation process by HMRC

VAT: An inspector calls! A business will have a visit from a VAT inspector for one of two reasons; a routine visit after selection by the HMRC computer based on the type of business and the level of turnover, or if the business has an unexpectedly large VAT repayment....
The New VAT Penalty System

The New VAT Penalty System

New system: The new VAT penalty system will apply to VAT periods starting on or after 1 January 2023 and will deal with late returns and late payments separately. Both legs of the system will reflect taxpayer behavior, and seek to punish persistent offenders rather...
New VAT penalty regime – the changes explained

New VAT penalty regime – the changes explained

A new VAT penalties regime was brought in this month, and any firms or individuals missing their filing deadline from January 2023 onwards will receive penalty points even if there is no VAT due to be paid. While this may sound more benign than getting a fine,...
What happens to the VAT on an aborted project?

What happens to the VAT on an aborted project?

It is quite common for a business to start a project, and then it either cannot progress for reasons outside the business’s control or the intended use changes. However, what happens to the VAT that has been reclaimed on the start-up or development costs if the...