Taxpayers are not always aware that, if they Appeal a VAT dispute to the Tribunal, the burden of proof is on them to disprove the HMRC assessment; and not on HMRC to explain it. (There are exceptions, especially in relation to certain penalties.)
Les Howard's vatadvice.org
this blog raises and addresses VAT issues.
I work with Accountants, Charities, and SMEs, providing VAT support. I come across a wide variety of interesting people, and a wide variety of VAT issues. Some of them will find their way to this blog.
And, I play guitar, but you probably guessed that!
One of the repeated complaints about the new HMRC website is that VAT Notices are only available in HTML format, and not pdf, as had been the case on the ‘old website.
Last year, the Office of Tax Simplification (OTS) published a report on the penalty regimes applied to taxes. During the last few years, diverse penalties applying to different taxes have been replaced by a ‘one size fits all’ approach.
A disturbing development has been seen in the way HMRC have been manipulating the Appeals process. Most of the evidence seems to be anecdotal, but I have come across a couple of published decisions which indicate the practice.
During 2014, perhaps the question I have been asked most often is how a taxable person using the FRS (Flat Rate Scheme) has to treat cross-border supplies.
Where a small business has substantial cross-border transactions, this issue will have a significant impact on his profitability.
A Tribunal decision has provided further evidence of the difficulties that HMRC find in monitoring taxpayers’ use of the Flat Rate Scheme (FRS), and how they handle situations when there is an apparent error.
One of those perennial questions: - how does a Transfer of a Going Concern (TOGC) interact with VAT registration?
There is an important VAT exemption for so-called ‘public interest bodies.’ However, over the past few years, HMRC have won a number of Tribunal cases, successfully arguing that their activities fall outside the exemption.
A huge number of VAT and Tax penalties are issued and appealed each year. Few of the decisions raise any significant point of wider significance. But, Total Technology (Engineering) Ltd.
A Tribunal decision was released late last year which widens the type of situation where HMRC issue estimated assessments, instead of itemising individual errors in relation to particular supplies.