VAT Grouping in the Care Sector: The End of Recovery as We Know It? What Is VAT Grouping and Why Does It Matter for Care Providers? VAT grouping allows two or more entities under common control to be treated as a single taxable person for VAT purposes. The biggest ben...
VAT Reverse Charge in Construction: Avoiding Costly Mistakes in 2025 What is the Domestic Reverse Charge? The DRC shifts the responsibility for accounting for VAT from the supplier to the customer for certain construction services. Rather than charging VAT on your sale...
Retail VAT: Navigating Zero, Reduced & Standard Rates for High Street and E-commerce Understanding VAT Rates in Retail Retailers deal with a mix of zero, reduced, and standard rates that vary by product, channel, and even bundle. Standard Rate (20%) : Most goods and retail services, f...
Hospitality VAT: Winning Strategies for Hotels, Restaurants & Holiday Let Businesses Multiple Rates, One Invoice: Hospitality’s VAT Puzzle Accommodation: Most hotel, B&B, and short-stay lets are subject to 20% VAT. Temporary reduced rates (such as those seen during COVID) have lapsed,...
VAT for Technology and Software Companies: Cloud, Apps, and SaaS in 2025 1. Place of Supply: Where Is Your Tech Sold? B2B (Business-to-Business) : Most services (e.g., bespoke software, consulting, licensing) supplied to VAT-registered businesses abroad are “outside the sc...
Sector-Specific VAT Guidance: Common Mistakes in Professional Services Understanding VAT for Professional Services Professional services are generally subject to VAT at the standard rate (20%), but the precise treatment can vary depending on: The nature of the service (c...
VAT Deregistration: When Downsizing or Pivoting Makes Sense When Can You Deregister for VAT? You can apply for VAT deregistration when: Your taxable turnover falls below the £88,000 threshold in the last 12 months, and you expect it to remain there. You stop s...
Navigating the Latest VAT Penalty Regime: SME Scenarios Explained The New VAT Penalty System: How It Works Late Submission Penalties—A Points System Points accrue each time you miss a VAT return deadline. Thresholds: Annual filers: 2 points triggers a penalty Quarte...
VAT Group Registration: Is It Right for Your Family Business or Group? What Is VAT Group Registration? A VAT group allows two or more eligible UK entities—typically companies or partnerships under common control—to register as a single taxable person for VAT. This means:...
Avoiding the “VAT Cliff Edge”: Tools to Monitor Turnover in Real Time Why the VAT Cliff Edge Matters Unexpected VAT registration can force price increases or margin cuts. HMRC imposes penalties if you register late or underpay VAT. Artificial “business splitting” to dod...
Surviving VAT Threshold Jumps: Planning for Growth Understanding the VAT Threshold The VAT threshold is based on your taxable turnover —the total value of everything you sell that isn’t exempt from VAT—measured on a rolling 12-month basis. If your tur...
Flat Rate VAT Scheme 2025: Pros, Cons, and Sector Insights for SMEs Who Can Join the Flat Rate VAT Scheme? You may opt for FRS if: Your taxable turnover (excluding VAT) is £150,000 or less in any rolling 12-month period. You do not expect your VAT-inclusive turnover t...