VAT news

Welcome to our VAT blog area – we talk about the things that are important to our clients and the essential VAT information we think you need to know.
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HMRC announces extension of Transitional Simplified Procedures in the event of a No Deal Brexit

carolineheath 27 March 2019 No comments

HMRC has announced further details of measures to support businesses with new customs requirements, if the UK leaves the EU without a deal. What has changed? HMRC is extending arrangements already announced (see our earlier blog article) for traders to use Transitional Simplified Procedures (TSP) which will make importing easier. This includes: an extension of the…

HMRC investigation

What to expect during an HMRC compliance check

carolineheath 27 March 2019 No comments

HMRC have recently updated their factsheet CC/FS1a About compliance checks to include more detail on what information they might request during a compliance check.  In this blog article we remind businesses of what to expect during an HMRC compliance check and how they can help make the process run as smoothly as possible. What is…

MTD for VAT countdown

The countdown to 1st April has begun: Are you ready for the digitalisation of VAT?

Elizabeth Wilson 12 March 2019 No comments

With Making Tax Digital (MTD) for VAT coming into force in less than a month, businesses that have not yet decided on a software solution need to act now to meet the new digital requirements applicable from 1st April. As the timing coincides with the UK’s departure from the EU at the end of March,…

Mercedes Benz VAT case

HMRC change policy on VAT treatment of Personal Contract Purchases (PCP) following CJEU decision

carolineheath 6 March 2019 No comments

HMRC have issued Revenue and Customs Brief 1(2019): Change to the VAT treatment of Personal Contract Purchases which explains a change in policy following the European Court of Justice (CJEU) decision in Mercedes Benz Financial Services C-164/16 (MBFS). Previously HMRC regarded supplies made under such contracts as supplies of goods and a separate supply of…

Brexit Future Relationship

Brexit: HMRC simplifies importing from the EU as part of “no deal” preparation

Elizabeth Wilson 14 February 2019 No comments

HMRC has announced Transitional Simplified Procedures (TSP) for customs in order to ease the importing process should we leave the EU without a deal. The new arrangements will be available for at least the first year. What does TSP involve? HMRC has written to 145,000 VAT-registered businesses trading with the EU to inform them of…

MTD pilot

HMRC extends MTD for VAT pilot scheme to VAT groups

Elizabeth Wilson 17 January 2019 No comments

HMRC has extended its Making Tax Digital for VAT (MTD for VAT) pilot scheme to VAT groups, as well as to all businesses that are mandated to join MTD for VAT from April 2019. VAT groups are the first type of business from the minority of businesses that are mandated to join MTD for VAT…

Crackdown on online sellers

HMRC crackdown on VAT evasion by online overseas sellers recoups over £200m

Elizabeth Wilson 16 January 2019 No comments

HMRC’s crackdown on online overseas sellers has resulted in an additional £205 million of VAT being declared since new rules to tackle tax evasion were introduced in 2016, according to a recent press release. Joint and several liability measures New joint and several liability rules for online marketplaces were introduced in September 2016 (see our…

QMV debate for tax policy

European Commission launches debate on a gradual transition to qualified majority voting for decision-making in EU tax policy

carolineheath 16 January 2019 No comments

The European Commission has started a debate on reforming decision-making for areas of EU  taxation policy, which currently requires unanimity among Member States. This unanimity often cannot be achieved on crucial tax initiatives and can lead to costly delays and sub-optimal policies. The European Commission’s Communication suggests a roadmap for a progressive and targeted transition to qualified…

Customs training grant

Government grants available for businesses that complete customs declarations

Elizabeth Wilson 15 January 2019 No comments

In “Grants for businesses that complete Customs declarations”, HMRC explains that in preparation for the UK’s exit from the EU, certain businesses can apply for two grants to support training and increased automation, under an £8 million government investment. Background In a “no deal” Brexit scenario, the free movement of goods between the UK and…

Brexit jigsaw HMRC letters

HMRC sends letter to businesses with actions to be taken NOW to prepare for a potential no deal Brexit

carolineheath 10 January 2019 No comments

HMRC has published a further letter on GOV.UK to help businesses that trade with the EU get ready to deal with customs in the unlikely event that the UK leaves the EU without a deal on 29 M‌ar‌c‌h 2019. There is one version of the letter for businesses based in England, Scotland and Wales, and…