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 the scope of the domestic reverse charged applied in respect of wholesale trading in electricity and gas. See the Domestic reverse charge ― accounting requirements guidance note for details regarding what information needs to be shown on the VAT invoice and how to account for the reverse charge.
In Budget 2014, the Government announced that it was intending to implement changes to the way in which output tax is accounted for on wholesale supplies of electricity and gas within the UK. From 1 July 2014, the domestic reverse charge must be used in order to account for VAT due on these types of supplies in order to combat increasing MTIC fraud.
The domestic reverse charge applies to all wholesale supplies of gas and electricity made between two UK parties unless the supply falls into one of the exemptions outlined below. This usually means a wholesale supply between two UK parties under trading contracts such as the European Federation of Energy Traders contracts, National Grid Master contracts etc and over-the-counter or spot contracts where:
supplies of gas through a natural gas system situated within the territory of an EU member state or any network connected to this system
supply of electricity
The domestic reverse charge is not applicable to supplies of gas or electricity made under a supply licence or metered supplies to domestic and business premises for their own consumption. VAT registered businesses that do not resell electricity and gas will not 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
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
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
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are
The rent-a-room scheme was introduced in the early 1990s to encourage homeowners to take in lodgers.Fundamentally, the rent-a-room scheme is a relief which means that the rent received by an individual from a lodger (up to a prescribed limit) can be exempt from income tax. If the gross rents are
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.