VAT road fuel scale charges are fixed, standardised amounts that businesses must use to account for output VAT when they provide fuel for private use in a vehicle that is also used for business
Category: Value Added Tax
Value Added Tax otherwise known as VAT information.
Penalty points for late filing of VAT returns
Many businesses are still unaware that the VAT late filing and late payment rules now operate on a points-based system, where repeated delays can quickly lead to a £200 penalty and added
Advantages of VAT Flat Rate Scheme
If your business has relatively low VATable expenses, the VAT Flat Rate Scheme can simplify your VAT reporting and may also improve cash flow. The VAT Flat Rate Scheme is designed to simplify VAT
VAT on goods you export
Exports from Great Britain or Northern Ireland can be zero-rated for VAT, provided businesses obtain valid export evidence within three months of sale and meet all HMRC documentation rules; accuracy
Benefits of the VAT Cash Accounting Scheme
Waiting to be paid but still having to hand over VAT? The VAT Cash Accounting Scheme potentially lets you pay VAT only when your customer pays you, helping to ease cash flow pressures for small and
Exception from VAT registration
Businesses over -90,000 turnover must register for VAT, but HMRC may grant exceptions if the increase is temporary. A business must register for VAT if either of the following applies: At the end
VAT – Entertainment provided to directors and partners of a business
When considering VAT on entertainment provided solely to directors or partners of a business it is generally not recoverable as VAT Input Tax. HMRC considers that directors and partners are not in
Unauthorised issue of a VAT invoice
Issuing a VAT invoice without registration or authorisation can lead to HMRC penalties, even if it is done by mistake. A penalty may be charged by HMRC when an individual or business issues an
When you cannot charge VAT (and What To Do If You Did)
Not all goods and services carry a 20% VAT, knowing the right rate can save costly mistakes. When a VAT-registered business issues an invoice to their customer, they must ensure that they charge the
VAT late filing penalties
New rules mean late VAT filings and payments now trigger points, fines and interest charges.
The VAT late filing penalties regime changed for accounting periods beginning on or after 1 January 2023.
VAT - digital record keeping
HMRC requires businesses to maintain accurate VAT records to ensure correct tax payments. While all businesses must retain general records (such as invoices, bank statements, and receipts), a key
VAT relief for the disabled
VAT relief is available on goods and services for people with long-term illnesses or disabilities.
There are special VAT reliefs available for certain people living with disabilities or long-term
Bookkeeping for VAT-Registered Businesses: Essential Records to Maintain for Compliance
Bookkeeping for VAT-Registered Businesses: Essential Records to Maintain for Compliance If you are VAT-registered, keeping accurate records is essential for staying compliant and avoiding penalties. You must track all sales and purchases, VAT invoices, VAT accounts, and any adjustments made. This helps you prepare accurate VAT returns and ensures your records are ready if HMRC … Continue reading Bookkeeping for VAT-Registered Businesses: Essential Records to Maintain for Compliance
Using the VAT Cash Accounting Scheme
Struggling with late-paying customers? The VAT Cash Accounting Scheme helps protect cash flow by taxing only what you have received.
The VAT Cash Accounting Scheme is designed to support businesses
VAT Annual Accounting
Streamline your VAT reporting with fewer returns and smoother cash flow. The Annual Accounting Scheme makes VAT easier to manage for eligible small businesses.
The VAT Annual Accounting Scheme is
VAT - advantages of the VAT Flat Rate Scheme
Small business? The VAT Flat Rate Scheme could cut paperwork and improve cash flow. Pay VAT as a set percentage of turnover and enjoy simpler admin, budgeting ease, and even a 1% discount in year one
VAT exempt supplies
Not all VAT-free sales are the same. Understanding the key difference between zero-rated and VAT-exempt supplies could save your business money and prevent costly VAT mistakes.
It’s important to
Are You Being Watched? Lifestyle Clues That Can Trigger an HMRC Probe Explained
Are You Being Watched? Lifestyle Clues That Can Trigger an HMRC Probe Explained If your lifestyle looks very different from the income you declare, HMRC may take a closer look at your finances. HMRC often uses lifestyle clues, such as expensive purchases or lavish holidays, that don-t match your reported earnings to trigger investigations. This … Continue reading Are You Being Watched? Lifestyle Clues That Can Trigger an HMRC Probe Explained
How HMRC Identifies Suspicious Tax Returns: Inside Their Advanced Risk Scoring System and Detection Methods
How HMRC Identifies Suspicious Tax Returns: Inside Their Advanced Risk Scoring System and Detection Methods When you submit a tax return, HMRC uses a special risk scoring system to decide if your return looks suspicious. This system checks your information against data already held and looks for patterns that don-t fit usual behaviour. If something … Continue reading How HMRC Identifies Suspicious Tax Returns: Inside Their Advanced Risk Scoring System and Detection Methods
When can you deregister for VAT?
Considering VAT deregistration? Whether compulsory or voluntary, knowing the rules, deadlines and risks of delay can save your business from costly penalties.
The decision to deregister for VAT may
Changes to VAT on donations to charities
The government is consulting on new VAT relief for goods donated to charities for free use. Could this fix an unfair gap in current rules? Have your say by 21 July 2025.
A new joint consultation from
VAT Road Fuel Scale Charges
The new VAT road fuel scale charges applicable from 1 May 2025 to 30 April 2026 have been published. The changes amend the VAT scale charges for taxing private use of road fuel to reflect changes in
Understanding VAT Bad Debt Relief
Struggling with unpaid invoices? If you’ve paid VAT to HMRC but never received payment from your customer, you may be able to reclaim that VAT. Learn how bad debt relief works and whether switching to
How to Handle VAT on Rental Properties: Essential Strategies for Landlords
How to Handle VAT on Rental Properties: Essential Strategies for Landlords Navigating VAT on rental properties can seem daunting, but it's crucial for landlords to understand how it impacts their finances. Most rental income from residential properties is VAT-exempt, meaning that you typically do not need to charge VAT on the rent you collect. However, … Continue reading How to Handle VAT on Rental Properties: Essential Strategies for Landlords
VAT if you sell your business
When selling a business, the Transfer of a Business as a Going Concern (TOGC) rules can allow the transaction to be VAT-free if key conditions are met. This prevents unnecessary VAT charges and
How VAT Payments on Account Work
Businesses owing over -2.3 million in VAT annually must make advance payments on account. These are based on the previous year-s VAT liability and paid in instalments. Late payments incur penalties,
Tax Deductions Every Landlord Should Know About: Essential Insights for Maximising Your Returns
Tax Deductions Every Landlord Should Know About: Essential Insights for Maximising Your Returns As a landlord, understanding tax deductions can significantly influence your profits. You can claim a variety of expenses that directly relate to managing your rental properties, which can lower your taxable income. These deductions include costs for maintenance, repairs, and even some … Continue reading Tax Deductions Every Landlord Should Know About: Essential Insights for Maximising Your Returns
Step-by-Step Guide to Complying with Making Tax Digital for VAT in 2025
Step-by-Step Guide to Complying with Making Tax Digital for VAT in 2025: Essential Strategies for Successful Implementation As a business owner, you know that staying compliant with tax regulations is crucial. The shift to Making Tax Digital (MTD) for VAT marks a significant change in how you manage your tax records. Understanding the steps to … Continue reading Step-by-Step Guide to Complying with Making Tax Digital for VAT in 2025
VAT and the goods you use in your own business
Using business goods instead of selling them is usually VAT-free, but some cases require VAT payments. These "taxable self-supplies" include cars taken from stock and certain buildings. Read
What-s included in your VAT return
With a -90,000 VAT registration threshold, many UK businesses might wonder whether to register voluntarily. Understanding how to balance output and input VAT can help optimise cash flow and avoid