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Do you sell at Car Boots? The VAT-Man is after you!
HMRC are taking an interest people who ‘trade’ at car boot sales, festivals, craft fairs, agricultural/flower shows, collectors fairs and similar events with a view to establishing what VAT liability has been applied to charges for trader’s pitches. The reason for this focus seems to be as a result of HMRC altering its characterisation of what establishes…
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UK businesses unaware of VAT obligations
A recent study has discovered that over three quarters of a million, of the UK’s smallest business owners are not aware of the VAT registration threshold. This could result in small businesses unintentionally not registering for VAT at the appropriate time thereby putting themselves at risk of penalties. If a business has a turnover in…
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Upper Tribunal considers whether compromise agreement precluded VAT recovery assessment
The Upper Tax Tribunal recently considered whether HMRC was entitled to issue an assessment to recover amounts of VAT paid to the taxpayer in error. The taxpayer, a supplier of dental nurses to dental practices, submitted a claim for repayment of overpaid VAT. This was on the basis that its supplies should have been treated…
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Do you need to appeal a VAT Surcharge Notice when the amount due is £nil?
The VAT surcharge system imposes no penalty the first time a business submits its VAT return later than it should have done. Neither is there a penalty for the second and third defaults provided the surcharge (calculated at 2% and 5% respectively of the VAT due on the return) does not exceed £400. It’s likely…
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Taxpayer wins appeal against level of penalty reducing it from 75% to 18%
It’s fair to say that in the world of sport, the decision of the referee to give a penalty can be contentious. Unfortunately for the team that feels it has been wronged, in most sports, the ref’s decision is final. If a penalty is scored against them, they have to live with the consequences,…
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Compliance costs SMEs
SMEs pay almost £10 billion in tax compliance costs each year, according to research by the Association of Accounting Technicians (AAT). In a recent survey of 500 businesses , the AAT revealed that the average SME spends £4,376 complying with business taxes each year. Collectively, the SME sector spends £9.9 billion annually on tax compliance. Important findings: SMEs spend up…
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Prompt Payment Discounts are Changing!
If you make or receive prompt payment discounts, you need to read this. HMRC has recently reminded us of its intention to remove one of the few gifts that it gives to taxpayers. The Taxman is not renowned for its spirit of generosity, but hitherto VAT registered businesses that provide prompt payment discounts to their…
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Employers face Auto Enrolment Penalties
Many of Britain’s small businesses are sleepwalking towards a workplace pension’s disaster. Thousands of UK Business Owners are missing the legally binding deadlines by which they must introduce occupational pensions for staff – and many will face expensive fines and penalties as a result. Auto-enrolment, the regime that requires all employers, no matter how large…
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Solicitors – Limited time tax disclosure opportunity
Are you a Solicitor? Are your tax affairs up to date? Are you certain? In the latest in its series of campaigns, HMRC has recently launched the Solicitors’ Tax voluntary disclosure opportunity. Solicitors who wish to make use of the facility must notify HMRC of their intention by 9 March 2015, and make disclosure and…
Understanding your business finances is about far more than meeting your statutory obligations. While many business owners focus on sales and turnover, a deeper understanding of profitability, cash flow and overall financial performance can lead to better decision-making and long-term business success. The financial statements produced by your accountant can …
August 14, 2026
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