Member Since: 30th May 2000
9th Nov 2017
The relevant directive 2008/9 requires, in Article 6 that the taxable person in question must carry out transactions which give the right of deduction in his home country. The right of deduction is limited in Article 168 of the recast 6th directive (2006/112/EC) to VAT incurred on goods and services used for tax transactions. Since your client is not charging VAT, then under EU law, he has no right of deduction and consequently no right to recover VAT charged in France.
9th Nov 2017
While I suspect that HMRC may have got it wrong due to the definition of "taxable person", the requirement for tax neutrality means that their approach is correct. If a taxable person only makes supplies which are exempt from VAT (or in this case he is exempt from applying VAT by virtue of not being registered) then there is no entitlement to recover VAT charged to him. Therefore, because he does not charge (this would include zero rate) VAT on any of his supplies, he cannot recover any VAT on supplies to him.
21st Jul 2017
If you operate as a limited company, your services will be taxable once you exceed the VAT threshold. However, if you operate as a partnership, services provided by the partners fall within the exemption for private tuition. However, this exemption does not extend to services provided by employees/subcontractors working for you, so once the value of services provided by employees/ subcontractors exceeds £85k, you will have to register for VAT, account for VAT on that income. I recommend you take specialist advice if you decide to use a partnership structure.
7th Jun 2016
HMRC did have problems accepting faster payments for a time, and this was not publicised. Check the time when the instructions were raised - if early in the day, it is reasonable to expect the payment to reach HMRC the same day. Just one payment qualifying for reasonable excuse is enough to require the surcharges to be recalculated and reduced. Also, if the early defaults were due to HMRC not accepting faster payments, your client would have a reasonable excuse. Gather the evidence - if there is enough to show reasonable excuse for some of the returns, get the reconsideration done and then if necessary appeal to the Tribunal. If the evidence available does not support you, don't bother.
20th Oct 2015
You are correct
The VAT exemption for education services is unusual in that it is dependent on the entity providing the service as well as the nature of the service provided. In this case, the only way in which the coaching services can be exempt from VAT is if they are provided by a sole trader (or a partner of a partnership) trading on his own account to individuals. That way they fall within the exemption for private tuition. Of course, as a sole trader, he can provide taxable services to the school and exempt services to individuals (the parents) but remain below the threshold if the taxable element is low enough.
His competitors may also have a problem.
Best of luck
7th May 2015
The Tax Tribunal decides
The problem arises because HMRC expect all appeals to be directed to them, and then frequently reject the appeal because it is outside the 30 day time limit. This decision is not theirs to make. If you use the correct form and make an appeal to the Tax Tribunal, NOT HMRC, there is a box to explain why the appeal has been made late. Provided there is a good reason, not simply the client or the accountant being inefficient, and the appeal is not hopeless, the Tax Tribunal will usually allow a late appeal.
12th Feb 2013
No. Receipts ARE relevant
Until a trader is registered for VAT, he cannot issue a VAT invoice. Therefore, the only way in which his turnover can be measured is by receipts. When the total received exceeds the VAT threshold, over a 12 month rolling count, the trader has 30 days from the end of that month to notify a liability to register. He should then be registered at the start of the following month. e.g, exceed threshold in December, notify January, registered from 1 February.
3rd Jan 2013
contact the corporation tax office
I had this issue with one of my clients recently. Contact the corporation tax office, explain the position and request that the deadline for payment of the corporation tax be extended until such time as you are able to file the CT 600 for the current year. They will expect an explanation of why losses have been incurred, and copies of management accounts, but provided that it is clear that the losses will cover the corporaiton tax liability, are likely to be helpful.
15th Dec 2011
Time limit is 30 days after the decision. Usually, HMRC will not object to a late appeal. Even if they object, you can ask the Tribunal for permission to appeal late. It is rare for appeals to be struck out on grounds that they were made late, particularly if you or your client have been corresponding with HMRC to try and resolve the matter. However, if you leave it too long, the risk increases that HMRC or the Tribunal may consider that you or your client have simply been dilatory. The sooner you appeal, the better.
18th Feb 2011
Notify obligation to register, but exemption may be available
If, after deducting the 85% zero rated sales of the sandwich shop, the total turnover is below the threshold for VAT registration, then you can ask HMRC to exempt the business from VAT registration, until such time as the standard rated turnover exceeds the limit. However, this exemption must be requested, otherwise you will incur a penalty for failure to notify an obligation to register. (VAT Act 1994, Sch1, para 14)