ICAEW.com works better with JavaScript enabled.

VAT articles

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

Displaying 1-30 of 100 results
INSIGHTS VIEWPOINT Tax news highlights from July 2026
  • Aug 2026
  • ICAEW Insights
ICAEW’s Tax Faculty provides a summary of some of the key developments in tax in July 2026 and explains where you can find further information.
INSIGHTS VIEWPOINT Further guidance available on the summer holidays VAT cut
  • Aug 2026
  • ICAEW Insights
HMRC has updated its guidance on the temporary reduced rate of VAT for children's meals, tickets and family attractions to include additional guidance on mixed supplies, party packages and prepayments.
INSIGHTS VIEWPOINT HMRC writes to businesses running prize draws
  • Aug 2026
  • ICAEW Insights
HMRC has written to businesses that run prize draws offering both paid and free entry routes to remind them that paid entries are subject to VAT at the standard rate of 20%.
INSIGHTS VIEWPOINT ICAEW reflects on Andy Burnham's first-week tax announcements
  • Jul 2026
  • ICAEW Insights
ICAEW’s Tax Faculty considers the announcements made during the new Prime Minister's first week in office, including reductions in VAT on domestic energy bills and in business rates bills for pubs, social clubs and live music venues.
INSIGHTS VIEWPOINT ICAEW CHART Chart of the week: inflation
  • Jul 2026
  • ICAEW Insights
Inflation dropped to 2.6% in June, with our chart this week illustrating how faster rises in energy prices have offset slower rises in food, alcohol and tobacco prices over the past year to keep inflation tracking core inflation downwards.
INSIGHTS VIEWPOINT HMRC confirms its position on the VAT treatment of supplies of medical staff
  • Jul 2026
  • ICAEW Insights
HMRC now accepts that supplies of locum doctors may be exempt from VAT where the doctors are registered with the General Medical Council (GMC) and perform medical services in that professional capacity.
Exclusive TAX FACULTY VAT and cryptoassets: international developments
  • Jul 2026
  • ICAEW
  • Taxline
Drawing on recent case law developments in Germany and Spain, members of ICAEW’s digital assets working party explain why UK businesses and their advisers should take care when applying the VAT rules to transactions involving cryptoassets.
INSIGHTS VIEWPOINT Government makes changes to the capital goods scheme
  • Jul 2026
  • ICAEW Insights
From 29 July 2026, the capital goods scheme (CGS) will no longer apply to computers and computer equipment, and the threshold for land, buildings and civil engineering work will be increased from £250,000 to £600,000.
INSIGHTS VIEWPOINT Tax news highlights from June 2026
  • Jun 2026
  • ICAEW Insights
ICAEW’s Tax Faculty provides a summary of some of the key developments in tax in June 2026 and explains where you can find further information.
INSIGHTS VIEWPOINT Most VAT and PAYE payments to be made by direct debit
  • Jun 2026
  • ICAEW Insights
The government is seeking feedback from businesses and other stakeholders on its plans to require VAT and pay as you earn (PAYE) payments to be made by direct debit.
INSIGHTS VIEWPOINT Significant changes announced at Tax Update 2026
  • Jun 2026
  • ICAEW Insights
The government launched a raft of consultations on 23 June 2026, including proposals to allow HMRC to recover low-value tax debts by deducting instalment payments directly from the taxpayer’s bank account.
Exclusive TAX FACULTY Modernising the UK’s VAT system
  • Jun 2026
  • Yige Zu
  • Taxline
Yige Zu explores three challenging areas of VAT design and suggests how the UK’s VAT system could be reformed.
INSIGHTS VIEWPOINT Three things that may surprise you about the summer holiday VAT cut
  • Jun 2026
  • ICAEW Insights
As businesses struggle to get to grips with the temporary reduced rate of VAT applying over the summer holidays, ICAEW’s Tax Faculty highlights three areas which could cause confusion for restaurants, venues and families.
INSIGHTS VIEWPOINT VAT rate reduced for families over the summer holidays
  • May 2026
  • ICAEW Insights
The rate of VAT on children’s meals and certain activities and attractions will be reduced from 20% to 5% between 25 June and 1 September 2026. Although this may be welcomed by families, it could pose significant implementation challenges for businesses.
INSIGHTS VIEWPOINT HMRC reminds businesses to register for VAT
  • May 2026
  • ICAEW Insights
Businesses that receive a letter from HMRC telling them they need to register for VAT should check their position carefully and register without delay if necessary.
Exclusive FARMING AND RURAL BUSINESS COMMUNITY VAT on land and property transfers
  • May 2026
  • Richard Taylor
  • Farming and Rural Business Community News
For farming businesses, land and buildings owned are often the most valuable assets on the balance sheet. When ownership changes, either through a sale, gift or part of a restructuring process, VAT should be considered at the earliest possible stage.
INSIGHTS VIEWPOINT What is the deadline for submitting a VAT return?
  • May 2026
  • ICAEW Insights
ICAEW’s Tax Faculty reminds businesses and agents that the deadline for submitting a VAT return and paying any VAT due to HMRC is not extended even if it falls on a weekend or Bank Holiday.
Exclusive CONSTRUCTION AND REAL ESTATE COMMUNITY Unlocking ‘golden brick’ – how proposed VAT reform could boost development
  • Mar 2026
  • Louise Cowell
Louise Cowell, Indirect Tax Director, Real Estate and Construction, RSM shares her thoughts.
INSIGHTS VIEWPOINT VAT recovery on share sales post Hotel La Tour
  • Mar 2026
  • ICAEW Insights
In December 2025, the Supreme Court brought the long-running Hotel La Tour (HLT) saga to an end, confirming long-standing principles of VAT recovery on costs related to share sales. ICAEW’s Tax Faculty explains the implications for businesses.
Exclusive TAX FACULTY The final chapter in the Hotel La Tour VAT saga
  • Feb 2026
  • Ed Saltmarsh
  • Taxline
The Supreme Court judgment in the Hotel La Tour saga confirms long-standing principles of VAT recovery on share sales, explains Ed Saltmarsh.
INSIGHTS VIEWPOINT Prepare for 2026/27: Businesses
  • Feb 2026
  • ICAEW Insights
April 2026 sees the start of Making Tax Digital (MTD) for income tax, changes to capital allowances and the construction industry scheme (CIS), and the introduction of a new VAT relief for qualifying donations of goods to charities.
INSIGHTS VIEWPOINT New guidance on VAT treatment of supplies of medical staff
  • Dec 2025
  • ICAEW Insights
HMRC has updated its position on the VAT treatment of the supply of temporary medical staff (locum doctors), and explained how businesses can claim a refund of overpaid VAT, in Revenue and Customs Brief 9 (2025).
INSIGHTS VIEWPOINT Agents with late VAT returns targeted by HMRC
  • Dec 2025
  • ICAEW Insights
HMRC is writing to agents with at least two overdue VAT returns and asking them to resolve the situation by 7 February 2026 or face action, including having their agent codes suspended.
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 ...
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 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.
Displaying 1-30 of 100 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.
Browse resources