It would have been interesting if the email had not been received if HMRC send out reminders if the online message has not been read as there is no guarantee a sent email will be received.
I would like to know the time scales for those businesses that are voluntary VAT registered and will still be UNDER the VAT threshold after the 1 April 2019 date and are not likely to ever exceed the VAT threshold. Is there a published date for all VAT registered businesses to switch to MTD?
It is a shame that HMRC will not be offering free software as they do for PAYE through their Basic Tools.
You mention in your article that 'box 1 output tax figure should logically equate to the box 6 (outputs) figure multiplied by 20%.'
I would appreciate your thoughts whether the following would cause a difference between Box 1 and Box 6:-
1. UK company providing services to a business in another EU country when Reverse Charges apply - Would this cause a discrepancy?
2. UK company purchasing services from a business in another EU country or Outside the EU when Reverse Charges apply - Do these get added to both Box 1 and Box 6 so does not cause a discrepancy?
However, my understanding is, if this was allowed you would then have to count this gain towards profits and if the business made an overall profit in the year then corporation tax would be due on the £370.
1. UK company registered under the FRS purchases Google Adwords from Google in Ireland.
2. Google raises invoice stating 'reverse charge'
It would appear from Notice 733 section 6.4 the UK company registered under the FRS does not have to include Google Adword invoice on VAT return as this section states:-
"purchases services from outside the UK to which the reverse charge applies
you do not make any adjustment to your flat rate turnover for these supplies.
For more information about reverse charges, see Notice 700 The VAT Guide."
Qu1 - Does this mean that the UK company does NOT have to pay the standard rate VAT on the Google Adword invoice?
The reason I ask is because if Google was a supplier in the UK they would have raised the Invoice including VAT and therefore the UK company would have paid VAT and could not claim back as they are registered under the FRS.
The reason I also find this very confusing is because:-
Flat Rate Sceme: How to complete your VAT Return box-by-box states:-
You need to include any services from abroad that the reverse charge applies to, but don't include the value of the services in your flate rate turnover calculations.
My answers
Hi,
It would have been interesting if the email had not been received if HMRC send out reminders if the online message has not been read as there is no guarantee a sent email will be received.
Regards
SteveB
Hi,
I would like to know the time scales for those businesses that are voluntary VAT registered and will still be UNDER the VAT threshold after the 1 April 2019 date and are not likely to ever exceed the VAT threshold. Is there a published date for all VAT registered businesses to switch to MTD?
It is a shame that HMRC will not be offering free software as they do for PAYE through their Basic Tools.
Hi,
Will this apply to services as well and if not will vat still be deducted at source by the EU supplier?
Hi Neil,
You mention in your article that 'box 1 output tax figure should logically equate to the box 6 (outputs) figure multiplied by 20%.'
I would appreciate your thoughts whether the following would cause a difference between Box 1 and Box 6:-
1. UK company providing services to a business in another EU country when Reverse Charges apply - Would this cause a discrepancy?
2. UK company purchasing services from a business in another EU country or Outside the EU when Reverse Charges apply - Do these get added to both Box 1 and Box 6 so does not cause a discrepancy?
Regards
SteveB
Added to profit and corporation tax due
Hi,
Interesting concept.
However, my understanding is, if this was allowed you would then have to count this gain towards profits and if the business made an overall profit in the year then corporation tax would be due on the £370.
Do you agree?
Regards
SteveB
Reverse charge under FRS
Hi,
Interested in your views on the following:-
1. UK company registered under the FRS purchases Google Adwords from Google in Ireland.
2. Google raises invoice stating 'reverse charge'
It would appear from Notice 733 section 6.4 the UK company registered under the FRS does not have to include Google Adword invoice on VAT return as this section states:-
"purchases services from outside the UK to which the reverse charge applies
you do not make any adjustment to your flat rate turnover for these supplies.
For more information about reverse charges, see Notice 700 The VAT Guide."
Qu1 - Does this mean that the UK company does NOT have to pay the standard rate VAT on the Google Adword invoice?
The reason I ask is because if Google was a supplier in the UK they would have raised the Invoice including VAT and therefore the UK company would have paid VAT and could not claim back as they are registered under the FRS.
The reason I also find this very confusing is because:-
HMRC webpage: http://www.hmrc.gov.uk/vat/managing/returns-accounts/fat-rate-returns.htm
Flat Rate Sceme: How to complete your VAT Return box-by-box states:-
You need to include any services from abroad that the reverse charge applies to, but don't include the value of the services in your flate rate turnover calculations.
Does Would appreciate your views.
Regards
SteveB