VAT

The guidance around the Tour Operators Margin Scheme (VAT Notice 709/5) has been updated, including Paragraph 6.1, which details how to work out the selling price under the Tour Operators Margin Scheme.   It states that the selling price should include: the total VAT-inclusive selling price of all your...

h Making Tax Digital (MTD) is the most fundamental change to the administration of the tax system for at least 20 years. The essential elements for businesses and organisations are: Paper records will no longer be sufficient: It will become mandatory for almost all businesses and landlords (self-employed, partnerships, limited companies and...

Business entertainment: Business entertainment is the entertainment provided by a business/company to people other than employees. An example of this is the entertainment provided to customers. If it is provided to employees of the company or if it is not provided free it means it does...

VAT cannot be recovered on business entertainment expenditure. This includes the gratuitous provision to customers or clients of hotel accommodation, food and drink or tickets to events. If a director or employee entertains a customer or client whilst away from the workplace location, the VAT on...

VAT returns are made quarterly in the majority of cases, but there are monthly and annual schemes. You must file your VAT return online by the end of the month plus 7 calendar days of the period end. For example for a quarter ended in May,...

The information provided in this article shows how you must account for VAT if you buy-in and re-sell travel facilities as a principal or an undisclosed agent (that is, acting in your own name). TOMS is the special name given to businesses that buy-in and re-sell travel, accommodation and certain other services. Traditional tour operators are not under the jurisdiction of this scheme.

VAT From 1 April 2013 2012 Standard rate 20% 20% VAT fraction 1/6 1/6 Taxable turnover limits Registration - last 12 months from 1 April or next 30 days over £79,000 £77,000 Deregistration - next year under £77,000 £75,000 Annual accounting scheme £1,350,000 £1,350,000 Cash accounting scheme £1,350,000 £1,350,000 Flat rate scheme £150,000 £150,000   Changes to registration and deregistration thresholds From 1 April 2013, the taxable turnover threshold, which requires a person...

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