July 2022 VATwatch

Bevan VAT Newsletter



Please note that the office will be closed on the following dates:

·       Week commencing 4th July

·       Week commencing 5th September



Tax Writing


I have recently added a new string to my bow and started doing some tax writing for AccountingWEB. 


If anyone has any feedback, or suggestions for future topics, do let me know. 





Changes to Business v Non-Business Rules


For charities, one major challenge has always been how to establish whether income is non-business income, and so outside the scope of VAT, or business income subject to VAT rules (although potentially exempt).


For years, the principles laid down in the case of Lord Fisher have been relied on, with 6 criteria to be considered.


On 1 June, HMRC released a brief setting out a 2 stage test to be used instead. 


This is a significant change and the brief should be read by any not-for profit organisations.




Option to Tax Notification


As you may be aware, HMRC has had a huge backlog, particularly in the option to tax department. Recently, taxpayers have been experiencing delays of several months before getting a reply.


From 30th May, a new trial has begun, intended to last 6 weeks, with the aim of speeding up the notification process.


Before the trial, when an option to tax notification was received, HMRC would carry out a number of checks.


During the trial, HMRC will continue to acknowledge the notification but will no longer acknowledge its validity. As such, the option to tax acknowledgement letter received from HMRC will become an acknowledgement of the receipt of the option to tax from the taxpayer.



UK Certificate of Status


On 1 May 2022, HMRC updated its guidance on requesting a certificate of status to provide to overseas tax authorities. From 1 May 2022, HMRC will normally issue the certificate by email. 






Thank you for taking the time to read this VATwatch round-up.



On Key

Related Posts

October 2023 VATWatch

Welcome to my October newsletter. As I mentioned last month, please be aware that the office will be closed for holidays the week commencing 2nd October.

Hilary Bevan of Bevan VAT

September 2023 VATWatch

Welcome to my September newsletter. Firstly I’d like to let you know that the office will be closed for holidays the week commencing 2nd October. My

Land and Property

August 2023 VATWatch

Welcome to my August newsletter. Firstly, I’d like to let you know that the office will be closed for holidays Thursday 3rd to Monday 7th

Bevan VAT Newsletter

July 2023 VATwatch

Welcome to my July newsletter. It’s been a busy month here at Bevan VAT, hopefully that means you’ve all been nice and busy too. New