From 31 May 2023, VAT registered businesses can set up a payment plan online if they owe less than £20,000 of VAT. An eligible VAT registered business can set up a VAT payment plan online if it: has filed its latest VAT return; owes £20,000 or less; is within 28 days of the payment deadline;…
Category Archives: VAT
17
Jul
Jul
The VAT Flat Rate scheme was introduced in 2002 to simplify VAT reporting for small traders, reducing the time taken to calculate VAT and prepare returns compared to normal VAT accounting. The thresholds for using (£150,000 pa) and exiting the scheme (£230,000 pa) have not changed since 2003. With the extension of Making Tax Digital…
10
Mar
Mar
Early in the COVID-19 pandemic, the Chancellor reduced the rates of VAT for the leisure and hospitality sector to just 5%. That reduced rate applied from 15 July 2020 until 30 September 2021 when the rate was increased to the current 12.5%. However, the rate is scheduled to revert to the normal 20% rate from…
27
Feb
Feb
Company-owned vehicles HM Revenue and Customs have announced revised tax-free advisory fuel rates from 1 March 2019 which may be paid for business journeys in a car owned by the business.  Rates for the previous quarter is shown in brackets. Engine size Petrol Diesel LPG 1,400 cc or less 11p (12p) 7p (8p) 1,600 cc or…
20
Feb
Feb
Hoteliers are you ready! From 1st March 2019 the treatment of cancellation fees is changing. Previously where a customer has paid a deposit for a room and then subsequently cancelled, you had been allowed to reclaim the output VAT on this deposit, since there would no longer be a supply of accommodation and therefore this…
