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Christmas crackers
Key points
- Breaking up an invoice over two months may help avoid needing to register for VAT.
- Partial exemption de minimis rules permit a claim of up to £7 500 exempt input tax a year.
- Splitting a business into two entities is legitimate as long as they are different activities and there are separate records bank accounts and invoices.
- Changes in 2021 include postponed accounting on the import of goods from anywhere in the world and the reverse charge for the construction industry.
The concept of a Christmas cracker is very simple: it starts as a single item full of colourful varieties and festive designs and then it is pulled in half to make it work. Well nearly half – depending on who pulls the hardest. Someone wins the prize only when it has been split.
The same approach is often relevant with VAT. There...
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