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1 to 10 of 28 articles
  • Tips & Advice VAT - Improve your cash profit on a building conversion
    Our subscriber is converting a house into four flats with a view to selling them. Her bookkeeper has advised her to register for VAT to enable her to claim 75% of any input tax she incurs. Is this advice correct?
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  • Tips & Advice VAT - Do we charge VAT for work carried out on a church?
    Do we charge VAT for work carried out on a church?..Q. Our company trades as an electrical contractor carrying out a wide range of commercial work. We are currently working for a building contractor who has a contract with a local church to build a new place of worship. The contractor says we should zero-rate our work because the church is a charity and he has received a certificate confirming this is the case. Is he correct? A. Definitely not! A quirk of the VAT rules is that a business working directly for...
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  • Tips & Advice VAT - Claim VAT on a new house build?
    Claim VAT on a new house build?..Q. My wife and I have just bought a plot of land. We intend to build a new house on the land and sell it. Can we register for VAT and claim input tax on our building costs? A. The answer is “yes”. There are two important points here: Jointly owned land is classed as a partnership for VAT purposes. Some advisors incorrectly think it is two sole traders owning 50% each. So the forms to complete when registering will be VAT1 and VAT2 plus HMRC’s property questionnaire VAT5L...
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  • Tips & Advice VAT - VAT certificate for new building was incorrect.
    VAT certificate for new building was incorrect...The case. Marlow Rowing Club (M) decided that its new water sports hub building would be used for a relevant charitable purpose (non-business), even though the building included a gym for non-members who paid for the facility on a use basis. M issued a certificate to its building contractor to obtain zero-rating on the builder services and materials, on the basis that the gym use was based on subsidised pricing and volunteer labour and therefore qualified as non-business....
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  • Tips & Advice VAT - Do we need a certificate?
    Do we need a certificate?..Q. We are converting a small block of three flats owned by our VAT- registered company into six bedsits. We have employed a contractor to do this and have asked them to charge VAT at 5% (which we believe is applicable), but they are refusing to do this saying they need a certificate. Shall we just pay and reclaim at 20% for the sake of getting it done? A. In short, no. If the conditions for the reduced rate to apply are met but you pay VAT at 20%, you will only be able to reclaim 5%...
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  • Tips & Advice VAT - HMRC v Caithness Rugby Club UT/2015/0155. Zero-rating
    HMRC v Caithness Rugby Club UT/2015/0155. Zero-rating..The case. This was an appeal to the Upper Tribunal (UT) by HMRC regarding the zero-rating of the construction of the Caithness Rugby Club’s (C) new clubhouse, on the grounds that it was intended to provide social or recreational facilities for the local community. HMRC considered that it was not eligible for zero-rating. The facts. C is a registered charity and a members’ club affiliated to the Scottish Rugby Union. It did not own the land it operated...
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  • Tips & Advice VAT - Building projects subject to more than one VAT rate
    Building developments can often be subject to different rates of VAT for the same project. This can make invoicing messy and time consuming - is there a way of simplifying the process?
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  • Tips & Advice VAT - Andrew Reeves v HMRC [2016] UKFTT 195 (TC). DIY Housebuilders Scheme
    Andrew Reeves v HMRC [2016] UKFTT 195 (TC). DIY Housebuilders Scheme..The case. This was a case relating to the application of the DIY Housebuilders Scheme. Andrew Reeves (R) claimed a VAT refund of £12,543.78 which HMRC disallowed on the grounds that the work to the property was an extension of an existing property rather than a new build. The facts. R bought a two-bedroom bungalow which he intended to extend to provide a five bedroom home. He obtained planning permission for “extension and alteration to...
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  • Tips & Advice VAT - Rules on dwellings are changed
    HMRC has released its latest Brief for 2016, confirming that some VAT rules in respect of buildings used as “dwellings” have changed. So what do you need to know?
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  • Tips & Advice VAT - VAT on residential construction
    There are special rules regarding the recovery of VAT on costs related to the construction of a residential house. What are those rules and what can’t you recover VAT on?
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1 to 10 of 28 articles