Tax Blog

Pre-registration input tax claims – to apportion or not?

3 October 2016

When a taxpayer becomes VAT registered they are permitted to make a claim to recover VAT incurred prior to the date of registration on goods on hand and services, subject to certain conditions and time limits. For goods, the supply must be within 4 years prior to registration and for services the time limit is 6 months.

VAT recovery on cars not available for private use

30 September 2016

VAT recovery on cars is “blocked”, therefore the input VAT cannot be recovered regardless of whether a car is used for business purposes. However, there are a handful of exceptions to this including where it can be demonstrated that the car is intended exclusively for business use and there is no intention to make it available to anyone for private use. This test has always been extremely difficult to meet.

VAT Pitfall for Businesses Buying Services from Abroad

28 September 2016

It is fairly well known that where services are supplied between businesses in the EU, then generally the place of supply for VAT is the country in which the customer is based. This means that the supplier would not charge the customer VAT, but the customer, if VAT registered, would have to account for VAT on the supply as if they were both the supplier and the customer. This is known as the “reverse charge” mechanism.

Withdrawal of free Corporation Tax filing software

26 September 2016

It’s just over a year since HMRC announced that they would be withdrawing their free to use CT600 Corporation Tax online filing software.  The software remains available until 31 December 2016 for accounting periods ended on or before 31 December 2015.

Guidance issued on Apprenticeship Levy

7 September 2016

The Department for Education has issued guidance as to how it proposes the new Apprenticeship Levy will operate, detailing how the 0.5% charge on employer’s wage bills will work, and who will be affected.

HMRC late payment interest rate cut

HMRC has cut the interest rate applied to late payments of tax from 3% to 2.75%, in light of the recent 0.25% reduction in the Bank of England base rate.

Commercial property transactions – Importance of taking expert advice on capital allowances – 01/09/2016

It has recently been reported by various agents that the Cornish commercial property market has performed robustly in the first half of the year. This is very consistent with our experience of advising on a significant number of transactions since the start of the year (for both vendors and purchasers), and is obviously pleasing.

Consultation on the use of salary sacrifice arrangements – 31/08/2016

If you are an employer and have salary sacrifice arrangement in place, HMRC have now issued their consultation document.

HMRC Release Inheritance Tax statistics

11 August 2016

On 29th July HMRC released updated inheritance tax (IHT) statistics covering items such as data about tax receipts, the composition of estates and the use of available reliefs.