Major VAT changes are being introduced by the EU on 1 July 2021, just six months after the end of the UK’s transitional deal. Neil Warren provides guidance on the key changes that will take place.
ICAEW's Tax Faculty produces TAXguides to provide practical support on technical areas of tax
The UK has left the EU, with 31 December 2020 marking the end of the transitional deal that has been in place since 1 February 2020. The EU departure will mean important changes for UK businesses that sell broadcasting, telecommunication and electronic (BTE) services to non-business customers (B2C) inside the EU. Neil Warren provides guidance on the key changes that will take place.
Although many of the implications of Brexit are currently unknown, VAT and customs duties are likely to be affected. This guide outlines the potential tax consequences. This guide was updated following the publication on 23 August 2018 of guidance from HMRC as to what will happen if there is no Brexit deal.
Features and articles
HMRC has taken some small but important steps towards giving agents access to the information and services available to clients. ICAEW’s Tax Faculty outlines recent changes including giving agents access to payments and liability information for VAT and employer PAYE.
Announcement about issues, caused by movement of work and redeployment of HMRC staff to man COVID helplines, and the ongoing work to progress cases and payments to IPs.
HMRC has revised its policy on meaning of ‘entire interest’ for the purposes of the construction self-supply charge following the Supreme Court’s judgement in the Balhousie Holdings case.
Highlights from the broader tax news week ending 13 October, which includes: new HMRC guidance on joint and several liability notices and on avoiding non-compliant umbrella companies. HMRC extends access for employer client data, is to cease benefit payments to post office accounts and confirms that DIY housebuilders can reclaim VAT on blinds and shutters.
Over recent weeks, with the aid of review software, a significant number of problems have come to light.
Neil Warren considers the VAT treatment of a range of business expenses and staff perks including entertaining gifts, staff uniforms, phone costs, car leasing and HMRC’s current policy around.
The new Financial Secretary to the Treasury has confirmed that the decision to postpone the introduction of Making Tax Digital for income tax was made in recognition of the time needed for taxpayers, agents and HMRC to prepare for changes.
HMRC is trialling a forced closure of the online VAT return for 800 businesses that should be complying with Making Tax Digital for VAT. ICAEW warns that these businesses will not be able to file VAT returns due on 7 October 2021 unless they have signed up to MTD VAT.
Webinars and recordings
This webinar will cover the latest developments in UK GAAP, focusing on topics relevant to the preparation of accounts for periods beginning on or after 1 January 2021.
From 1 July 2021, the existing Mini One Stop Shop (MOSS) scheme transitions to a new framework. This is the 2021 EU e-commerce VAT package. This webinar will provide an explanation of the new EU -ecommerce VAT regime.
In this webinar, Neil Warren, Independent VAT speaker, author and consultant explains the new rules on VAT domestic reverse charge for construction services and how it will affect your clients.
In this webinar Neil Warren VAT speaker, author and consultant, provides practical VAT saving tips.
Slides relating to VAT changes in Europe webinar
This webinar runs through post-Brexit VAT changes for overseas sellers exporting to Europe.
Bloomsbury Core Accounting and Tax Service
Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Core Accounting and Tax Service.
Chapter providing expert guidance on VAT in relation to business partnerships, including LLPs.
Monthly updates on the UK government's help for businesses during the coronavirus pandemic, plus recent developments in UK tax and a VAT news and cases roundup.
A chapter on VAT aspects of HMRC investigations, to help practitioners with tax administration and compliance.
A chapter on taxpayers' rights and HMRC powers in relation to tax returns.
This chapter is designed to give a basic guide to the completion of the VAT return.
This chapter covers VAT in relation to the Flat Rate Scheme for Small Businesses.
The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact email@example.com.
Guide to completing a Self-Assessment tax return for 2017/18, with advice and worked examples covering key aspects of personal taxation in the UK
This second chapter on VAT explains how the tax is administered by HMRC, as well as a number of schemes which simplify the VAT system.
A chapter setting out the essential principles of VAT, as set out in the Value Added Tax Act 1994 and subsequent Finance Acts.
Short summary of what is chargeable for VAT in the UK, who constitutes a taxable person and how much tax is paid at different rates of VAT.
A high level overview of the framework of VAT administration covering appeals and the interest charged on VAT recovered through the raising of an assessment.
Section covering the penalties for late VAT registration, unauthorised issue of tax invoices, and late, fraudulent or erroneous tax returns.
Briefly explains who has an obligation to register for VAT with a worked example for a small business. It also notes the pros and cons of voluntary VAT registration.
This chapter explains the schemes for businesses recovering VAT incurred within the EU.
A response dated 5 October 2021 to a consultation published by HMT on 30 September 2021, including ICAEW’s Tax Faculty customary pre-Budget letter to the Financial Secretary to the Treasury. It calls for the acceleration of work to build a modern tax system, while urging a “manageable pace” of transition, it cautions against implementing tax changes without consultation, such as the new Health and Social Care Levy.
Pushing through proposals to change basis periods ahead of the expansion of Making Tax Digital will cause as many problems as it solves and would be a backwards step for affected businesses, warns ICAEW in its response to HMRC's consultation on aligning basis periods with the tax year. ICAEW has urged the government not to implement to proposals.
The Tax Faculty believes that simplification of the VAT system for land and property is highly desirable and that consideration is given to removing the current VAT exemption rules for commercial property. However, now that the UK has left the EU, as land and property is only one aspect of the complications caused by the exemption regimes more generally, we think that the time has come to undertake a thorough review of the VAT exemption rules with a view to its abolition.
In responding to HMRC's consultation on the Tax Administration Framework Review ICAEW argues that the starting point of such tax reform should be significant simplification of the underlying tax rules and that HMRC needs to be given the resources and funding to give it the capacity to take on such a major piece of work.
Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.
Guidance for businesses on how to declare goods brought in or removed from a customs site, moved between different customs sites, moved with the same site, and when goods and services can be zero-rated for VAT.
Guidance on how to charge and account for VAT on the movement of goods between Northern Ireland and EU member states. It cancels and replaces the previous VAT Notice from December 2020.
<p>Paper from HMRC on the EU rule changes from 1 July 2021 relating to the movement of goods from Northern Ireland to the EU and imports of low value goods into the EU or Northern Ireland.</p>
Step-by-step guide explaining how to bring goods into the UK from any country. It covers tax and duty, customs declarations, licences and certificates, VAT refunds, commodity codes, and other import procedures.
Information on which businesses can, or need to, account for import VAT on their VAT Return (also called postponed VAT accounting). It also covers businesses that use agents or forwarders to import goods on their behalf, how to complete customs declarations, and importing merchandise in baggage.
Access internal VAT guidance from HMRC, prepared for it's staff.
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