July 2022 VATwatch

Bevan VAT Newsletter

Holidays

 

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.

 

Share:

On Key

Related Posts

Bevan VAT Newsletter

November 2022 VATwatch

VAT and Food: When are Marshmallows zero-rated?! It’s the time of year for bonfires and fireworks. We all love toasted marshmallows to accompany sparklers and

image of a pound coin

October 2022 VATwatch

DL Expo I am very happy to be sponsoring DL Expo which takes place at the Dolphin Centre on Wednesday 5th October. It is the

September 2022 VATwatch

Holidays Please note that the office will be closed for holidays the week commencing 5th September. New Online VAT Registration Procedure There has been a new

What is Partial Exemption

August 2022 VATwatch

Holidays Please note that the office will be closed for holidays the week commencing 5th September. More issues with Postponed Import VAT Statements I feel like