VAT

The guidance around the (TOMS) Tour Operators Margin Scheme (VAT Notice 709/5) improved, including Paragraph 6.1, which details how to work out the selling price under the Tour Operators Margin Scheme.   TOMS states that the selling price includes:   Total VAT-inclusive selling price of all your margin...

Q: I am an IT consultant, operating through a VAT registered UK company. I am supplying consultancy services to another UK IT business. I have incurred hotel, travel and meal expenses, and charging these on to the company I am supplying services to. Can I...

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 not...

Recovering VAT on business entertainment expenditure is not possible. 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...

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 treatment of car motor expenses for VAT purposes can be quite complex. Car Leasing   You are normally only permitted to reclaim 50% of the input tax for the cost of car leasing regardless of the price of the car. However, this restriction does not apply if...

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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