VAT and three-party transactions

A guide to the VAT implications of having three entities involved in a transaction. VAT can get very complicated when there are three parties involved in a transaction. This may happen in an agency situation where one party is arranging for the supply of goods or services in return for a commission, but it can […]

Art Dealers and the VAT Margin Scheme

The VAT Margin Scheme is available for use by VAT-registered businesses who buy and sell second-hand goods, works of art and other collectables. Provided certain conditions are met, the seller of such goods need charge (and pay to HMRC) VAT only on the difference between the purchase or acquisition cost of the work in question […]

An introduction to VAT

If you’re expecting your turnover to exceed £82,000 this year, then you’re probably having mixed feelings. On the one hand reaching this figure, the VAT registration threshold, is a sign of success. Many consider this a moment when their fledgling venture can truly be called a real business for the first time. On the other […]

More on teacakes!!

My many fans, (!) will be aware of my past postings on the subject of futile tax cases concerning various foodstuffs.  With this in mind, it was with great excitement that Gerry, my loyal PA burst into my room this morning and advised me that she has just heard on the radio that Marks and […]

Food and tax cases again

For those of you who have been following with bated breath my ongoing postings relating to chocolate teacakes, Pringles and their various definitions, I am pleased to be able to say that I’ve just spotted another case that I just have to bring to your attention. The latest saga in these thrilling cases relates to […]

More on Pringles

For those of you waiting with baited breath to hear the latest in the ongoing saga relating to what has now become known at the Pringles case, I can advise you that Procter and Gamble, the manufacturers of the eponymous potato snack, lost their appeal court case.  As a result, they will be forced to […]

More on Food and VAT

Some of you will have read previously about smoothie maker Innocent and its attempt to get its crushed fruit drinks exempted from VAT. The co-founder of the drink manufacturer had stated it that is was absurd that fast food items are excused from VAT whilst his own company drinks which contain healthy components are fully […]

Some Customer!

HMRC have announced that they are changing their banking arrangements for the purposes of VAT.  The notice itself, which must have been sent to many thousands of businesses up and down the land, advises VAT registered businesses that they are changing to two new commercial banks namely Citi and Royal Bank of Scotland Group.  As […]