The VAT exemption for education extends to the supply of goods and services closely related to the main supply. This is an important issue, and can sometimes cause confusion.
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!
HM Revenue & Customs have won a significant Upper Tier decision relating to the VAT Repayment Supplement.
I am often involved in advising on deregistration. Like registration for VAT, it is best planned, not guessed. And, like registration, it can trigger expensive errors.
The two main reasons to deregister are ceasing to trade, and a reduction in turnover.
A Tribunal has shed light on a more aggressive approach being adopted by HMRC. This seems especially prevalent in dealing with exempt activities, such as education, health care, and financial services.
A European Court decision has been decided, and remains somewhat ‘under the radar.’ This concerns the VAT treatment of an individual generating electricity and then selling it onto the national grid.
I am seeing that HMRC Officers routinely check the operation of the Bad Debt Relief rules. In recent months, I have come across a number of businesses who have been assessed for errors made.
The First-Tier Tribunal has decided a significant case which will affect many plumbers and heating engineers. It was a test case concerning the use of the VAT optimiser software, which is widely used by plumbers.
With the change of Tribunal rules a few years ago, the automatic right to costs in the event of a successful Appeal was abolished.
The Tribunal has released its decision in the case of Rapid Sequence Ltd (http://www.bailii.org/uk/cases/UKFTT/TC/2013/TC02826.html).
Business splitting is a perennial issue. In this issue, readers might be interested in a recent Tribunal case where HMRC simply back-dated an assessment on the basis that there was a single business.