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    VAT trap for private use of company vehicles

    In the last few months there’s been little work for two of your employees but they’ve continued to have use of their company vans, including for personal journeys. Does this affect what you...

    Value added tax - Supplies - What is a supply? - Neither a supply of goods nor a supply of services - 77090

    Certain supplies are deemed to be neither a supply of goods nor a supply of services and are therefore outside the scope of VAT. The following list indicates the supplies that fall into this category....

    Value added tax - Supplies - A supply of goods or services? - Deemed supplies - Self-supply of car - 77335

    A car is deemed to be self-supplied where a car dealer takes a car out of stock for private use. In this scenario, input tax would have already been recovered, and the dealer would effectively...

    Value added tax - Supplies - VAT liability - Reduced-rated supplies - Summary - 78325

    The following supplies are liable to a reduced rate of VAT of 5%. Supply Notes Reference Fuel and power Supplies for domestic, relevant residential or charitable use qualify for reduced-rating....

    Value added tax - Input tax - Input tax - Blocked input tax - Cars - 79200

    The availability of an input tax deduction on the acquisition, or hiring, of cars is very restricted. It is therefore vital to know whether a particular vehicle is a car, as defined by the VAT provisions,...

    Value added tax - Input tax - Input tax - Deductible input tax - Evidence - 79330

    In order to make a claim for recoverable input tax, the business must have evidence of the amount of VAT paid on purchasing the goods or services in question, which generally takes the form of...

    Value added tax - Specific situations - Second-hand goods and collectors' items - The basic margin scheme - Motor cars - 82180

    For a car to be treated as second-hand, it must have been used on the road, or be appropriated to fixed assets for use in the business by a car dealer. The margin scheme cannot be used for any vehicle...

    Value added tax - Special accounting methods - Flat rate scheme - Operating the scheme - Limited cost trader - 83115

    The following table shows the rates applicable to the various business sectors defined by HMRC. Category of business carried on Flat rate % Accountancy or book-keeping 14.5 Advertising 11 Agricultural...

    Value added tax - Land and buildings - Land and existing buildings - Exploitation and letting of property - 84645

    The following table outlines the liability of common supplies made in the letting and exploitation of property. Standard-rated supplies Details Exceptions Reference Provision of sleeping accommodation...

    Value added tax - Cross-border transactions - Goods within the EU - Acquisitions of goods - Liability to tax - When does a liability arise? - 85115

    VAT is payable in the UK on any acquisition from another member state. The person acquiring the goods is liable for the payment, where both of the conditions outlined below are satisfied: - the acquisition...