VAT cut on energy efficient materials- Spring Statement 2022

With effect from 1st April 2022, the Government have implemented temporary measures to zero-rate VAT applicable on the installation of qualifying energy-saving materials and heating equipment.  The changes were announced in the Chancellor’s Spring budget, in a move set to financially incentivise energy efficiency in homes, amid the rising cost of energy prices and ‘green’ […]

Have your say on the proposed introduction of the new Online Sales Tax

HMRC is seeking consultation on its proposal to introduce an online sales tax (OST), which it believes could address imbalances between the taxation of the retail sector businesses operating wholly online compared to those operating in store specifically in relation to funding business rates reductions for those operating through physical outlets.  It should be noted […]

Changes to Making Tax Digital for VAT from 1st April 2022

Who will be affected? Under previous guidelines, only businesses whose taxable turnover met or exceeded the VAT registration threshold were required to register for Making Tax Digital (MTD). However, HMRC have extended requirements to smaller VAT business which will come into force from the first full VAT period starting on or after 1st April 2022.  […]

VAT Reduction for Hospitality: how does it actually work in practice?

In the Budget in early March, Rishi Sunak announced that the VAT rate cut, from 20% to 5%, introduced in July 2020, which saw certain businesses working within the hospitality sector benefiting, was to be extended for six more months. What does the 5% VAT reduction apply to? The temporary reduction applies to businesses who […]

Domestic Reverse Charge for VAT: 6 Practical Steps to Prepare

If you operate a VAT registered business within the building and construction industry, you will likely have heard about the ‘Domestic Reverse Charge’ which will change the way VAT is to be collected.   Initially, the new legislation was due to be implemented from 1st October 2019 however, due to a lack of guidance from HMRC, pressure from […]

Postponed Import VAT Accounting Scheme: how to access your import VAT statements

Since 1 January 2021, following the ending of the transition period, VAT is now payable on imports coming into the UK from anywhere in the world, including imports from the EU.   There are a number of ways that payment of the import VAT can be managed by businesses. One option introduced by HMRC, which applies […]

How do I repay the VAT I deferred because of COVID?

Card Payment

The option to defer VAT payments between 20 March and 30 June last year was welcomed by many businesses as it freed up much-needed cash for them during the lockdown. In order to take advantage of this scheme, businesses either didn’t make the payment or they cancelled their direct debit to prevent the payment being taken automatically.   […]