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 a brief overview of any retail scheme requirements that are specific to certain industry sectors. This note should be read in conjunction with the following notes:
Retail schemes ― overview
Retail schemes ― Point of Sale
Retail schemes ― Apportionment
Retail schemes ― Direct Calculation
Bespoke retail schemes
The standard schemes work on the basis that the VAT liability of the goods purchased will have the same VAT liability when they are sold. However, with food and drink, this is not necessarily the case, as the goods purchased may have been zero-rated when purchased but are liable to VAT at the standard rate (or the temporary reduced rate, see the Hospitality industry ― temporary reduced rate from 15 July 2020 to 12 January 2022 guidance note) when they are supplied due to the fact that they are supplied in the course of catering. Businesses using the point of sale scheme will be able to correctly account for VAT as the VAT liability will be determined at the time the goods are supplied. However, under the Direct Calculation and Apportionment schemes, the calculation is based on the VAT liability of the purchases made by the business. Therefore, these schemes cannot be used for catering businesses.
The catering adaptation should be used by businesses that cannot use the either normal accounting or the Point of Sale scheme and have a retail turnover of no more than £1m.
The following conditions must be satisfied.
The business must:
be able to
**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 substantial shareholding exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. Conversely, if losses are generated by the disposal and the SSE conditions are
‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
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
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.