Paying VAT and new penalties

Image via Wikipedia From 1 April 2010 all VAT payments made by cheque will be treated as being paid on the day the cleared funds reach the Taxman’s account. Previously the VAT was treated as being paid on the working day the cheque reached the VAT Office. A cheque will normally take at least three…

Filing VAT online

You might have received a letter from the VATman that officially notifies your company or business to file its VAT return online, or face penalties. If your business had a turnover of £100,000 or more in the year ending 31 December 2009 you are legally required to file your VAT returns online, rather than as a…

Taxation of Double Cab Pickups

There has been a lot of publicity lately about the tax advantages of running cars with low CO2 ratings. There are a number of benefits: possible 100% first year tax deduction for the cost of the vehicle, much reduced benefit in kind charges, lower road fund tax and so on. But not all of us…

VAT number verification

Image via Wikipedia The European Commission have enhanced their on-line service which allows taxpayers to check if the VAT number given to them by a potential supplier or customer is valid. The on-line service has been updated to allow taxpayers to obtain a certificate to prove that they checked that a VAT registration number was…

Backdated claims for VAT refunds

You may have in the past overpaid VAT output tax or underclaimed VAT input tax, and this might date back many years. Now is the time to claim the overpayment back from H M Revenue & Customs. – Claims can be back dated to April 1973, or the date of your VAT registration if later.…

Housebuilders Renting Property

Many building firms are now holding completed residential property which is proving difficult to sell in the current property market. One solution is to rent out this property for a short period in the expectation that property prices will recover. Ordinarily most of the VAT paid on construction costs is recoverable. Unfortunately rents received from…

The VAT change to 15% – some practical advice

As widely leaked/predicted the standard rate of VAT has been reduced to 15% from 1 December 2008. This reduction will be effective for a fixed period of 13 months. From the 1 January 2010 the rate will revert to 17.5%. For VAT registered traders this creates a number of practical problems and issues, which we…

VAT when buying or selling a business

The purchase of a business as a ‘going concern’ is not subject to VAT. So if you continue with the existing trade in place of the seller, you do not have to pay VAT on the transfer of the trading assets. A common example would be taking on a public house, if the changeover happens…

HMRC further online incentive

From 1 October 2008 HMRC will no longer send taxpayers a postage paid envelope to use when paying their tax or filing/paying their VAT returns. This apparently is a signal to us all to make returns and payments online. To ease the payment process HMRC are also about to make it easier to pay our…

Check if NI numbers and VAT numbers are valid

A guide to help you determine if NI numbers and VAT numbers are valid. Certain PAYE returns (P35, P11D) will be rejected by HMR&C if a National Insurance number (NINO) is incorrectly displayed. Valid numbers always follow the same format, two letters, followed by six numbers, followed by a single letter. i.e. AB123456D. The following…