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 outlines what HMRC will generally do during a routine VAT inspection. For information on when a visit may be arranged, see the HMRC arranging visit guidance note.
HMRC generally start an inspection by asking a number of questions regarding the activities undertaken by the business. It is important that HMRC obtains a good understanding of the activities performed before they start checking the accuracy of the returns as this will help to reduce the number of queries raised by HMRC during or after the visit.
It would be prudent to ensure that the following people are made available for the visit:
a member of staff who is very familiar with the activities undertaken by the business as HMRC will usually ask a number of detailed questions regarding the activities so they can check and confirm the VAT liability of the supplies made
finance staff who are responsible for maintaining the accounting books / records and the staff member responsible for preparing the VAT returns
depending on the size of the business, HMRC may also request a meeting with a senior member of staff in finance as this member of staff has ultimate responsibility for VAT matters within the business
Once HMRC have gone through their list of questions at the start of the visit the following activities will be performed. The activities may not necessarily be performed in this order as each VAT officer conducts their visits differently. However, this list gives
**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
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
IntroductionA company that is not resident in the UK will only be subject to UK corporation tax if it carries on a trade in the UK through a permanent establishment. Where it does so, it will be subject to UK corporation tax on all profits that are attributable to the UK permanent establishment.
Duty to prepare trust accountsUnder the laws of England and Wales, trustees have a duty to account to the beneficiaries for their financial administration of the trust fund. This duty is established by a substantial body of case law. In the case of Armitage v Nurse, Millett LJ stated:“Every
Restriction of carry forward and carry back of trading lossesFollowing the extensive changes to the loss carry forward provisions introduced from 1 April 2017, the anti-avoidance rules restricting the offset of trading losses following a change in ownership were tightened up and extended.