Output tax is the tax that a VAT registered business is required to charge on its taxable supplies (broadly, its sales) at the standard and reduced rates of VAT. It is payable to HMRC after the deduction of any recoverable input tax.
Output tax must also be accounted for on certain ‘deemed supplies’ made by the business, such as gifts, the use of business assets for non-business purposes, and where a relief from VAT no longer applies (for example where the purchase of a building was zero-rated on the grounds that it was to be used for charitable purposes, and it ceases to be used for such purposes).
In some cases the liability to account for output tax becomes the liability of the purchaser, rather than the seller. This is known as the reverse charge. In those cases, the output tax is simultaneously recoverable as input tax, subject to any restrictions which may apply.
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
The supply of fuel and power is treated as a supply of goods for VAT purposes. Supplies are fuel and power are normally liable to VAT at the standard rate. However, providing certain conditions are satisfied, it is possible for suppliers to charge the reduced rate of VAT on certain supplies of fuel
Generally speaking, inheritance tax (IHT) is charged only on transfers of value by individuals and trusts. However, to prevent avoidance of the tax, the charge is extended to participators in close companies where:•a close company makes a transfer of value, or•the share capital or loan capital of a
This guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax liability falls on the trustees
What is transfer pricing?Transfer pricing is the prices at which an enterprise transfers either physical goods, intangible property or services, including financing arrangements, to associated enterprises. Generally, enterprises are associated if there is direct or indirect control by one of the