VAT – Limited Cost Traders

At the start of 21st century it dawned on the then generous Commissioners (HMRC) that VAT was a subject too complicated for small businesses (with turnover up to £150,000) to be spending their business time on. So, they inserted a new Part VIIA into the Value Added Tax Regulations1995 introducing what is now known as […]

UK VAT registration

The basic rule that determines whether you need to compulsorily register for VAT in the UK is simple: If you’re a ‘taxable person’ making ‘taxable supplies’ in the UK above the registration threshold you need to register. But that is to over simply what is otherwise considered an extremely complex system of finding out if […]

VAT – Artificial Separation of Business

Basically an anti-avoidance provision, this rule is aimed at preventing avoidance of VAT by the maintenance or creation of any ‘artificial’ separation of business activities carried on by two or more persons. Schedule 1 to Value Added Tax Act 1994 (VATA 1994) deals with disaggregation of businesses as follows: Para 1A(1): Paragraph 2 below is […]

VAT is the problem??

The UK VAT regime is characterised by a complex piece of legislation comprising the Act (VAT Act 1994) and myriad other regulations, notices, and extra statutory concessions. To confound the situation, tribunals and courts often contribute their own bit through various interpretations and judgements. If that isn’t enough there are the EU directives and the […]