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Where Taxpayers and Advisers Meet

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by les35
Fri Jan 17, 2020 11:05 am
Forum: VAT & Excise Duties
Topic: VAT Input tax from tax period more than 4 years ago
Replies: 5
Views: 479

Re: VAT Input tax from tax period more than 4 years ago

I would not expect HMRC to back-date an application for the FRS. You can always ask, though, especially since your input tax claim have been disallowed.
(VAT is not always fair!)
by les35
Wed Nov 20, 2019 4:24 pm
Forum: VAT & Excise Duties
Topic: option to tax
Replies: 15
Views: 833

Re: option to tax

If HMRC rule there is no TOGC, then they can assess the Vendor. The Vendor can raise a VAT-only invoice to the purchase, who will reclaim it, since he has opted to tax. But things are not always so smooth! (1) if the contract does not allow the Vendor to request further consideration, then they will...
by les35
Wed Nov 20, 2019 4:15 pm
Forum: VAT & Excise Duties
Topic: Complimentary hotel rooms - input VAT issues
Replies: 2
Views: 508

Re: Complimentary hotel rooms - input VAT issues

Interesting question. Where the occupant is an employee, Sch 6. para 10 provides that the supply is nil. But presumably the supply is still in the course of the hotel's business, so input tax remains deductible. On reflection I think a free supply to a person who is not an employee is also something...
by les35
Wed Nov 20, 2019 1:07 pm
Forum: VAT & Excise Duties
Topic: option to tax
Replies: 15
Views: 833

Re: option to tax

The submission of the OTT by the specific date is a condition of a TOGC where the Vendor has opted to tax.
So a failure to submit in time renders it not a TOGC, so the supply is taxable.
by les35
Wed Nov 20, 2019 11:10 am
Forum: VAT & Excise Duties
Topic: option to tax
Replies: 15
Views: 833

Re: option to tax

Although the transaction is completed, as you say, VAT Law will always take precedence over contract law. This means HMRC can re-visit the transaction and charge VAT and penalties to the Vendor. Whether he can re-charge that to the purchaser depends on the wording of the contract. (HMRC's approach i...
by les35
Tue Nov 19, 2019 5:08 pm
Forum: VAT & Excise Duties
Topic: option to tax
Replies: 15
Views: 833

Re: option to tax

If the TOGC conditions are not met, the Vendor is required to charge VAT (and increased SDLT?).
The purchaser should be able to recover it; but again that will be subject to HMRC unhelpfulness.
by les35
Tue Nov 19, 2019 2:15 pm
Forum: VAT & Excise Duties
Topic: option to tax
Replies: 15
Views: 833

Re: option to tax

You can apply for a belated notification of the option to tax. See Notice 742A, para 4.2.1 - https://www.gov.uk/guidance/opting-to-tax-land-and-buildings-notice-742a#sec4 or you may have to seek a review. You have the legal and guidance issues to address, and also HMRC's stubborn-ness and unhelpfuln...
by les35
Wed Nov 13, 2019 6:13 pm
Forum: VAT & Excise Duties
Topic: VAT and services for private or non-business use
Replies: 4
Views: 795

Re: VAT and services for private or non-business use

I fear the guidance you quoted in VATSC083810 is mis-leading. As I read the SI, the output tax charge applies even where the taxpayer has only be entitled to recover part of the VAT charged (art 6).

Do you have a specific issue or dispute with HMRC?
by les35
Tue Nov 05, 2019 6:07 pm
Forum: VAT & Excise Duties
Topic: Option to Tax - Disapplying
Replies: 3
Views: 1284

Re: Option to Tax - Disapplying

The anti-avoidance legislation you refer to only applies if the tenant is partially exempt, which is not common for a motor dealer. From your updated post there is no VAT charge, and no need to go down the Group registration route. But I am reluctant to be more specific without sight of documents (V...
by les35
Mon Nov 04, 2019 10:01 pm
Forum: VAT & Excise Duties
Topic: Option to Tax - Disapplying
Replies: 3
Views: 1284

Re: Option to Tax - Disapplying

If he deregisters the property rental business he will have to account for VAT under the deemed supply rule. Arithmetically this is probably the same as the what you are thinking.
But there will be a solution which does not involve repayment of the VAT; perhaps a Group registration if he is eligible.

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