December 2022 VATwatch

 

Uber Settles VAT Dispute

Uber has settled their VAT dispute with HMRC, paying £615m to settle all outstanding VAT claims.

 

Uber had attempted to claim that VAT should only be paid on the commission they received from drivers, rather than on the fee charged to service users. However, in December 2021 the High Court found that Uber was the principal service provider, rather than the driver.

 

Expect to see fares rise as the multi billion dollar San Francisco based company passes the cost on to service users.

HMRC Guidance for Responding to Questions about a Repayment Return

HMRC has released a summary of how to respond when they write to a business with questions about a repayment return. They give details of how to reply online.

 

HMRC seem to be requiring quite a bit of standard information which they already should have on file. They state that they will review information and aim to respond within 7 working days.

 

Read the guidance

Autumn Statement – VAT Threshold to Remain Unchanged

As part of the government’s Autumn Statement, the Chancellor announced that the VAT registration threshold of £85,000; as well as the deregistration threshold of £83,000 are to remain the same for at least a further 2 years from April 2024.

HMRC VAT Gap Estimate

HMRC have published their estimate of the VAT gap; the difference between VAT they believe they should receive and the VAT they have received for the year 2021 to 2022. 

 

The VAT gap model includes an adjustment to remove the impact of the VAT Referral Scheme introduced during COVID, the gap is estimated to be £10 billion. 

More about the VAT Gap

HMRC Guidance on VAT Liability and Energy Bill Support Schemes

The Energy Prices Bill was introduced to Parliament in October 2022. The government announced support for households, businesses, voluntary and public sector organisations facing rising energy bills through three schemes.

 

For details VAT liability for each of the three schemes, the link below takes you to the full guidance.

Read the Guidance
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