Posts Categorized: VAT

VAT Question of the Week

Question As a business, we are committed to developing our staff and consequently have a number of employees on training contracts, whereby as their employer we pay for professional training costs and examinations. The terms of engagement are fairly typical in that should they leave within a certain period they are required to repay the… Read more »

VAT Question of the Week

Question My client is a VAT registered Ltd Co that owns a portfolio of rental properties both commercial and residential. The company purchased some land adjacent to a pub on which they incurred VAT. In order to reclaim the VAT, my client opted to tax. The company is now in the process of selling the land to… Read more »

VAT Question of the Week

Question My client trades below the VAT threshold in the UK but is to supply marketing consultancy services to an unregistered business in France. If these supplies take his turnover over £85,000 should he register for VAT in the UK or does he need to register in France, or neither?   Answer For VAT purposes,… Read more »

VAT Question of the Week

Question My client is setting up a new café business and wants to buy some kitchen equipment from Italy.  As she hasn’t VAT registered yet she has been told by the supplier that she will be charged Italian VAT.  Is this correct, and if so can she claim it back?   Answer The supply of… Read more »

VAT Question of the Week

Question My client whose main activity is farming, has been approached by a telecoms company who are based in the Republic of Ireland, who wish to site a phone mast on my clients land in the UK. The telecoms company say they are not expecting any VAT to be charged. Is this because they are… Read more »

VAT Question of the Week

Question My client is on the VAT flat-rate scheme and has received a substantial insurance payout for damage to the trading premises. Should this exempt income be included in the flat-rate scheme turnover?   Answer Compensation paid out as a result of an insurance claim is not exempt from VAT, but is outside the scope… Read more »

VAT Question of the Week

Question My client runs a construction company and the director is considering using self-billing arrangements.  I understand that there needs to be self-billing agreements in place that comply with the requirements in VAT Public Notice 700/62 and that each self-billing invoice needs to contain the statement ’The VAT shown is your output tax due to… Read more »

VAT Question of the Week

Question My client has been paid twice by a customer for the same invoice. He has tried to contact them but without success as they appear to have gone out of business. Does my client have to declare output tax on the overpayment? Answer No, where an overpayment is received due to a mistake by… Read more »

VAT Question of the Week

Question My client owns a residential property and is looking to build another one 17 meters from the main house.  Although the new building will be self-contained residential accommodation, there are restrictions in the planning consent that refer to it as an annexe and state that the annexe cannot be used or disposed of separately… Read more »

VAT Question of the Week

Question My client has recently arranged for a UK business to supply consultancy services to a business in the USA and he will be invoicing the UK business for his commission imminently. I understand that the place of supply for intermediary services is where the customer belongs and so, as my client’s customer is in… Read more »