VAT Agenda
Hot Take – Away Food
The European Court of Justice has heard a number of cases concerning hot take-away food. All of which were from Germany. It was held that the supply of hot take-away food should be subject to the lower rate of VAT. Here in the UK that should be zero rate. However, because there is no guarantee that UK Authorities will uphold the German cases so certain larger firms of accountants are bringing pressure to bear.
Read the full storyAre Your Business Records Robust For Tax Purposes?
HM Revenue & Customs (‘HMRC’) have announced that they intend to introduce a programme of Business Record Checks that will review both the adequacy and accuracy of business records within the ‘small and medium enterprises’ (‘SME’) sector. HMRC have produced a consultation document seeking views on how best to implement the programme to achieve a major improvement in the standard of record keeping in SMEs. It is important to note that, HMRC are not seeking views on whether to introduce the programme, it will happen, rather they are seeking views on how to implement.
Read the full storyAre Joint Contracts of Employment VAT Efficient?
It is quite common for businesses or other organisations to loan staff to a third party company, which may be connected or unconnected. This is particularly the case in the charity and not-for-profit sector where trading subsidiaries are common.
Read the full storyOnline Filing of Accounts – New Rules: Special Rules for Smaller Charities
With effect from 1 April 2011, new rules require all companies and organisations liable to Corporation Tax to file their Company Tax Return, accounts and computations online for any accounting period ending after 31 March 2010. This includes any charities required to file a Company Tax Return.
Read the full storyResidential Accommodation
VAT law provides reliefs for dwellings, and for buildings for ‘a relevant residential purpose’, such as care homes and student accommodation, subject in each case to various conditions.
Read the full storyPubs with flats
Where a pub is sold or leased, and the owner has opted to tax, the price may need to be split if the property includes a residential element. It is normal in these cases to allocate 90% of the price to the commercial premises, and to charge VAT on this, and to treat 10% as for the residential part, and VAT-exempt. This has been generally understood to follow from an agreement entered into some years ago between HMRC and the Brewers’ Society.
Read the full storyTransfers Of Going Concerns
On a Transfer of a Going Concern (TOGC), it is accepted that the buyer takes on any responsibility to adjust VAT originally incurred by the seller, and subject to the Capital Goods Scheme (CGS). TOGC clauses normally contain a warranty that, for example, the property is not subject to the CGS.
Read the full storyIncidental Parking
The provision of parking facilities is usually subject to VAT. But, where it is incidental to an exempt (un-opted or residential) property letting between the same landlord and tenant, HMRC have historically seen it as also being exempt.
Read the full storyWhat does the CRC Energy Efficiency Scheme mean for your business?
The Carbon Reduction Commitment Energy Efficiency Scheme (“CRC”) is a new UK mandatory emissions trading scheme, which started in April 2010 and applies to businesses and public sector organisations. CRC applies to businesses and organisations which procure electricity directly from an energy provider. Similar schemes are being implemented all across Europe.
Read the full storyService charges
TheUKtreats most service charges as following the VAT treatment of the rent – if the property is un-opted, or residential, service charges are generally exempt.
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