Tax / One in five businesses borderline for VAT actively avoid registration

One in five businesses which are operating just below the VAT registration limit admit to taking deliberate action to remain under the threshold, even if it means turning down work, according to research commissioned by HMRC

Tax / HMRC loses further tour operator VAT case at FTT

HMRC has lost its appeal at First Tier Tribunal (FTT) over its claim that an online ‘bedbank’ supplier of hotel rooms via a bookings website should have been paying VAT on its services, after arguing that in this particular instance foreign law applied

Tax / Small businesses face digital filing early if VAT threshold drops

Proposals put forward by the Office of Tax Simplification (OTS) suggesting a potential reduction in the VAT registration threshold could impose digital record keeping requirements on small businesses earlier than expected, as well as increasing costs and administrative burdens, the Association of Taxation Technicians (ATT) is warning

Tax / Dencher on VAT: pub apportioned using floor space in Matthews

When it comes to property transactions and VAT compliance there are some tricky issues to surmount. Stanley Dencher, specialist tax writer at CCH Online, considers the complexities of VAT treatment highlighted in the Matthews [2016] TC 05426 case about apportionment of a public house and upstairs flat 

Tax / Littlewoods: end of the road for compound interest claims

Robert Marchant, partner at Crowe Clark Whitehill, considers how the outcome of the Littlewoods case will affect outstanding compound interest VAT reclaims, which are estimated to total as much as £17bn

Tax / HMRC fails to publicise DB pension scheme VAT guidance

HMRC has been criticised for failing to make public updated guidance on the recovery of VAT incurred on defined benefit (DB) pension scheme costs to employers, trustees and pensions providers who have been waiting for news of any change for some months

Tax / OTS looking at VAT simplification

The Office of Tax Simplification (OTS) is to publish a report later this week setting out a range of proposals for simplifying VAT, arguing that after more than 40 years what was meant to be a simple tax has become highly complex and has not kept pace with changes in society

Tax / Littlewoods loses claim for £1.25bn interest payment from HMRC

The Supreme Court has found in favour of HMRC in a long running case concerned the payment of interest on a VAT refund due to Littlewoods, with the judges dismissing the catalogue company’s claim that it was due an additional £1.25bn in compound interest

Tax / HMRC updates guidance on VAT on supply of telecommunications services

HMRC has updated its guidance about how to determine the place of supply of services in order to work out where the services are liable to VAT to reflect legislative changes which came into force on 1 November regarding the supply of telecommunications services

Tax / VAT updates: November 2017

Graham Elliott, VAT expert at City & Cambridge Consultancy considers missed direct debit and default surcharge in Spiral Packs case, Mercedes beats HMRc over agile car leases, liability of pension fund management

Tax / OECD issues guidance on collection of cross-border VAT

The OECD has released new implementation guidance to promote the effective collection of consumption taxes on cross-border sales, by ensuring the consistent application of internationally agreed standards for VAT treatment

Tax / Dodwell: overhaul of EU VAT will benefit micro businesses

Bill Dodwell, partner and head of tax policy at Deloitte, questions whether it is time to extend the EU's Mini One Stop Shop (MOSS) system to other countries to help micro businesses

Tax / Consultation on details of fulfilment house rules

HMRC has announced a technical consultation on the draft statutory instrument for the fulfilment house due diligence scheme (FHDDS), which applies to businesses that store any goods imported from outside the EU for or on behalf of someone outside the EU, and is designed to address concerns over VAT payments by online retailers

Tax / Standard rate VAT applied to civil wedding

Stanley Dencher, specialist tax writer at Croner-i, considers whether the standard VAT rate applied on multiple supplies in the Blue Chip Hotels case, involving a civil wedding which hired out separate rooms in the hotel for both the wedding ceremony and reception

Tax / HMRC urged to act on online VAT fraud by overseas sellers

HMRC has been too slow to address the problems of online VAT fraud by overseas sellers and its estimates of the tax loss are ‘out of date and flawed’ according to a report from the public accounts committee (PAC), which says the current uncertainty over the terms of the UK’s withdrawal from the EU risks making the problems worse