In just over six months, builders, contractors and other trades associated with the building industry will have to get to grips with a new way of accounting for VAT.
Businesses which import or export goods will be aware of the difficulties that leaving the EU with no withdrawal agreement in place will cause them. However, other businesses will also be affected by immediate changes to the VAT system.
There were rumours before the Budget that the VAT registration threshold would be reduced, but the Chancellor has committed to hold it at £85,000 until April 2022.
Commercial properties which are more than three years old will not have VAT attached to their sale or rent unless the owner or leaseholder has opted to apply it. This is called the “option to tax”.
If your business is VAT registered, and the turnover for the last year has exceeded £85,000, you should soon receive a letter from HMRC stating that you must comply with the making tax digital (MTD) rules from April 2019.
Will I have to VAT register my business which delivers GCSE education?
When is a vehicle a commercial vehicle for VAT purposes and can I claim all input VAT as a sole trader even if there is anticipated private use?
After the purchase and refurbishment of a freehold property on which the VAT has been reclaimed will this VAT have to be repaid when the business closes a year or more later?
HMRC is pushing ahead with its plans for Making Tax Digital (MTD) for businesses, although some changes concerning non-business income have been put on hold
My client is selling a property on which he recovered VAT a couple of years ago and has been occupying for his trade, and therefore I assumed that he must charge VAT on the sale. The prospective purchaser is hoping to develop four flats to let out so he won’t be able to recover any VAT, and his accountant believes that there is a way around this because our client purchased the property for less than £250,000.
Can the partners make a fresh start with their VAT registration?
As a VAT registered business, you have to do two things to avoid being charged a VAT penalty; pay your VAT on time and submit your VAT return on time.