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.
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 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.
I have seen some indication of HMRC rejecting both routine and unusual VAT adjustments.
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.
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.