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VAT articles

Articles written by experts from ICAEW related to VAT under the UK tax regime.

Displaying 1-30 of 142 results
INSIGHTS VIEWPOINT Budget: Changes made to VAT rules and processes
  • Nov 2025
  • ICAEW Insights
A new VAT relief for business donations of goods to charity and a significant change affecting suppliers of private hire vehicle (PHV) and taxi services were among the announcements made at the Autumn Budget 2025.
Exclusive FARMING AND RURAL BUSINESS COMMUNITY VAT status of poppadoms and impact on a farm shop
  • Nov 2025
  • Julie Butler
  • Farming and Rural Business Community News
As shown by the ‘Jaffa Cake’ and ‘marshmallow’ VAT status sagas, the charging of VAT on ‘marginal’ food supplies can cause ramifications in the confectionary industry with implications for farming. In Walkers Snack Food Ltd v CRC in the Upper Tribunal, the ‘Sensations Poppadom’ came under question as to whether it was zero or standard-rated. Some might argue that the name ‘Walkers Snack Food’ does not promote zero-rated food. And who doesn’t love all those products. For the farm shop that acts as village shop and supplier of ‘goodies’ for all the farm diversified activities of campsites, farm ...
INSIGHTS VIEWPOINT Extending deemed reseller rules to combat VAT fraud – can it work?
  • Nov 2025
  • ICAEW Insights
Amazon proposes a change to the rules for online marketplaces that would mean the marketplace collects VAT on all third-party sales. Ed Saltmarsh analyses the practicality of the proposal ahead of the Budget.
Exclusive TAX FACULTY ICAEW prize winners suggest how to fix VAT
  • Nov 2025
  • Tax Faculty
  • Taxline
The winners of ICAEW’s research prize recommend broadening the VAT base and utilising the resulting revenues to reduce the VAT rate and provide compensation for lower-income households.
INSIGHTS VIEWPOINT Reforming VAT could raise £80bn a year, says ICAEW
  • Nov 2025
  • ICAEW Insights
ICAEW is urging the government to consider a single rate of VAT with minimal exemptions. Such reforms will make it simpler to do business and generate billions for the UK economy.
INSIGHTS VIEWPOINT HMRC clarifies VAT treatment of insurance services
  • Nov 2025
  • ICAEW Insights
The recent First-tier Tribunal ruling in the Hastings Insurance Services Ltd case suggests that UK insurance intermediaries may be able to reclaim under-recovered input tax on overseas supplies made before 2024.
INSIGHTS VIEWPOINT ECONOMIC UPDATE International Trade Week: Imports and exports – who pays the VAT?
  • Nov 2025
  • ICAEW Insights
The rules governing import and export VAT are fraught with complexity. Mistakes can be a significant cost to businesses if they get this wrong. We answer some of the most frequently asked questions on VAT and trade.
INSIGHTS VIEWPOINT ECONOMIC UPDATE Economy explainers: how is property taxed?
  • Oct 2025
  • ICAEW Tax Faculty
Taxes on transactions in, and income from, land and buildings are a frequent topic for pre-Budget speculation. ICAEW’s Tax Faculty explains the rules currently in place for taxing property.
INSIGHTS VIEWPOINT ECONOMIC UPDATE Economy explainers: what is VAT?
  • Oct 2025
  • ICAEW Tax Faculty
Did you know that £1 in every £5 of tax collected by the government is VAT? ICAEW’s Tax Faculty explains how VAT works, the problems with the current system and what could be done to improve it.
INSIGHTS VIEWPOINT HMRC updates process for correcting VAT errors
  • Oct 2025
  • ICAEW Insights
HMRC has made digital notification the standard route for reporting most VAT return errors. Agents have been able to use the online error correction form since July 2025.
INSIGHTS VIEWPOINT INSIGHTS SPECIAL AI case study: applying AI to VAT queries
  • Sep 2025
  • ICAEW Insights
Bevan VAT Consultancy has been using generative AI for the past six months. It’s a useful tool for summarising legislation and case law, but it’s not without its flaws.
INSIGHTS VIEWPOINT How to fix VAT: strategies for reform
  • Jul 2025
  • ICAEW Insights
Is there hope for a significantly reformed and improved UK VAT in the future or are we restricted to endlessly tinkering with the existing design? A panel discussion at ICAEW’s recent How to Fix VAT Conference explored the options.
INSIGHTS VIEWPOINT How to fix VAT: barriers to simplification
  • Jul 2025
  • ICAEW Insights
Regardless of whether you believe fixing VAT is best done by tinkering around the edges of the existing system or the nuclear option of a full-blown overhaul, the challenges surrounding changes should not be underestimated.
INSIGHTS VIEWPOINT New in the M&S Foodhall: a VAT dilemma
  • Jun 2025
  • ICAEW Insights
M&S’s new Strawberries & Creme Sandwich, inspired by the viral Japanese fruit sando, is dividing opinions on taste, and VAT treatment. We consider if the latest summer must-have is a sandwich, confectionery or a cake and what this means for VAT.
INSIGHTS VIEWPOINT HMRC changes its policy on VAT and investment costs
  • Jun 2025
  • ICAEW Insights
In Revenue & Customs Brief 4 (2025), HMRC has revised its policy on an employer’s entitlement to deduct VAT paid on services relating to the management of assets held by an occupational pension fund.
INSIGHTS VIEWPOINT ICAEW influences EU VAT simplification
  • Jun 2025
  • ICAEW Insights
How to grow: long-time ICAEW members have contributed valuable insights to the EU’s policy debate on how to simplify VAT. Two of them explain the rationale behind the Institute’s involvement.
Exclusive TAX FACULTY The VAT treatment of cryptoasset custodial services
  • Jun 2025
  • ICAEW
  • Taxline
In the first of a new series of articles on cryptoassets, members of ICAEW’s digital assets working party explain how UK VAT might apply to custodial services, and what businesses can do to manage their VAT obligations.
Exclusive TAX FACULTY Ideas for reforming VAT
  • Apr 2025
  • ICAEW
  • Taxline
VAT prize-winners Sze Teen Wong, Cheryl Ong and Anna Poh point to international experiences to explain how the UK’s VAT system could be made simpler and more progressive.
INSIGHTS VIEWPOINT HMRC turns spotlight on profit extraction schemes
  • Apr 2025
  • ICAEW Insights
In its latest spotlight, HMRC warns companies not to use a scheme that uses advertising and marketing expenditure to reduce taxable profits and disguise employment income in the form of redeemable loyalty points.
INSIGHTS VIEWPOINT HMRC increases interest rates for tax paid late
  • Mar 2025
  • ICAEW Insights
As first announced at the Autumn Budget 2024, the interest rate charged by HMRC for late payments of most taxes and duties will increase from 7% to 8.5% from 6 April 2025.
TAX FACULTY Follow the numbers: 10 years of MTD
  • Mar 2025
  • ICAEW
  • Taxline
It has been 10 years since the then Chancellor of the Exchequer, George Osborne, fired the starting gun on what was to become Making Tax Digital. HMRC has declared MTD for VAT a success but challenges lie ahead in the phased introduction of MTD for income tax from April 2026.
Exclusive TAX FACULTY Help from HMRC with VAT compliance controls
  • Feb 2025
  • ICAEW
  • Taxline
HMRC has published new guidance to help businesses reduce the risk of making VAT errors. Rob Janering and Simon Atkins highlight the key points that businesses and their agents need to be aware of.
INSIGHTS VIEWPOINT New VAT guidance on cladding remediation work
  • Jan 2025
  • ICAEW Insights
HMRC has published guidance clarifying its policy on the VAT treatment of remedial works to buildings, including the replacement of cladding.
INSIGHTS VIEWPOINT How to fix VAT: digitalising the system
  • Dec 2024
  • ICAEW Insights
Digitalisation of VAT promised great rewards, but initial attempts have faltered as HMRC navigates unexpected complexities in the system and the range of taxpayers it deals with. Despite some success, more work is needed to push the changes through.
VAT reform prize winning proposal
  • Dec 2024
In 2024, ICAEW called for the submission of research proposals addressing how the UK’s VAT system can be reformed to make it fit for the 2030s. The authors of the selected proposal, Cheryl Ong, Sze Teen Wong, and Anna Poh, were awarded a cash prize of £5,000.
INSIGHTS VIEWPOINT The policy adviser’s perspective on VAT – evolution not revolution
  • Dec 2024
  • ICAEW Insights
Mike Cunningham, former Deputy Director at HM Treasury, talks about the complexities of the UK VAT system and the ways it could be reformed to make it fairer for all.
INSIGHTS VIEWPOINT The EU perspective on VAT – make the most of Brexit
  • Dec 2024
  • ICAEW Insights
Donato Raponi, former Head of the VAT Unit at the European Commission, says many VAT systems are too complicated and, having exited the EU, the UK is now in a good position to make significant changes.
INSIGHTS VIEWPOINT Why previous efforts to simplify VAT have failed
  • Nov 2024
  • ICAEW Insights
Fifty years on from its introduction, VAT is a complex tax that taxpayers struggle to understand. Despite attempts at simplification, including by the Office of Tax Simplification itself, VAT remains notoriously complicated. Experts explain why this is the case.
INSIGHTS VIEWPOINT TECHNICAL ROUND UP Technical round-up: October 2024
  • Oct 2024
  • ICAEW Insights
This month’s top stories feature eight Budget updates covered by ICAEW’s Tax Faculty, a list of software products that are now ready for MTD ITSA, and new VAT guidance for private schools.
INSIGHTS VIEWPOINT The complicated and costly world of VAT
  • Oct 2024
  • ICAEW Insights
Everyone knows UK VAT is complicated and, for taxable persons, costly to comply with. But why is the tax so complex, and why does it often impose onerous compliance costs?
Displaying 1-30 of 142 results
Looking up the front of the Bank of England towards a blue sky.
Thought leadership

How to fix VAT

  • Hub page
  • 18 Nov 2024
ICAEW explores the challenges and opportunities offered in reimagining VAT and it's application. Read about the history of VAT, the lessons that can be learned from outside the UK and the potential of digitalisation.
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