The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note provides an overview of methods used by HMRC to collect VAT due. HMRC cannot issue an assessment to collect the VAT due on these types of errors or omissions.
This section provides details of the types of situations where HMRC will treat a debt as a 'crown debt' and the steps they will take to collect the VAT due. It is important to note that unlike VATA 1994, s 73, which prescribes time limits for the making of assessments, demands for amounts where an assessment is not appropriate are not restricted by any time limit constraints. Please see the Assessments guidance note for more information.
If an amount is charged as VAT on an invoice and it is not declared to HMRC, HMRC has the power to collect the VAT amount from the person issuing the invoice as a crown debt. This applies whether or not VAT is actually due on the supply by a party.
VATA 1994, Sch 11, para 5(3) states:
5(3) Sub-paragraph (2) above applies whether or not -a)the invoice is a VAT invoice issued in pursuance of paragraph 2(1) above; orb)the supply shown on the invoice actually takes or has taken place, or the amount shown as VAT, or any amount of VAT, is or was chargeable on the supply; orc)the person issuing the invoice is a taxable person;and any sum recoverablefrom a person under the sub-paragraph shall, if it is in any case VAT be
5(3) Sub-paragraph (2) above applies whether or not -
the invoice is a VAT invoice issued in pursuance of paragraph 2(1) above; or
the supply shown on the invoice actually takes or has taken place, or the amount shown as VAT, or any amount of VAT, is or was chargeable on the supply; or
the person issuing the invoice is a taxable person;
and any sum recoverablefrom a person under the sub-paragraph shall, if it is in any case VAT be
**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.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.