VAT

Staff uniforms and associated VAT and benefit in kind liabilities

TGH Construction Ltd (TC4132)

Can VAT input tax incurred on a property before purchase be reclaimed?

New rules aimed at digital businesses will lead to needless complication

Revenue and Customs Brief 49/2014 provides guidance on what to do when a business raises or receives a VAT invoice offering a prompt payment discount from 1 April 2015.

Under new legislation in VATA 1994, sch 6 para 4, suppliers must account from 1 April for VAT on the amount they actually receive and customers may recover the amount of VAT that is actually paid to the supplier.

E Hope v Ireland and others, Chancery Division

ToTel Ltd v CRC, Upper Tribunal (Tax and Chancery Chamber)

An accountant who grossly under-declared his income has been jailed for 16 months, after pleading guilty to seven tax fraud offences totalling in excess of £65,000.

HMRC found Stephen Douce, co-director of ACA Accountancy Services Ltd, Derby, claimed he and his wife both had an annual household income of only £4,500, when in fact he earned more than £56,000 a year.

His false self assessment submissions meant he evaded income tax and National Insurance contributions of £18,203.79 for himself and £1,591.21 for his wife.

VAT liability relating to staff working abroad

Does the VAT default surcharge regime achieve its purpose?

HMRC have introduced a new online payment service for taxpayers who wish to settle their self assessment and VAT bills by debit or credit card.

The system was launched by the department in beta mode on December 2014, in partnership with card processing provider Worldpay.

Taxpayers still have the option of paying by card using the Billpay service hosted by Santander Corporate Banking – which the Revenue expects to be superseded by the Worldpay equivalent.

General Healthcare Group (TC4176)