The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note has been updated to reflect the VAT position for fulfilment houses in Great Britain from 1 January 2021.
If a business stores goods in the UK for sellers established outside of the UK, it may need to apply for the fulfilment house due diligence scheme (FHDDS). Details of the scheme and how to apply can be found below.
Businesses that store goods where the following criteria apply will be required to register under the scheme:
where the goods are imported
the goods are owned by, or stored on behalf of, a person established outside of the UK
the goods are being offered for sale and have not been sold in the UK previously
the goods have been released into free circulation after being stored under a customs regime
Apply for the Fulfilment House Due Diligence Scheme
HMRC emphasises that businesses should register if they meet the relevant criteria even if they do not consider that they are a fulfilment house or are registered with HMRC for other schemes that requires the business to undertake due diligence in respect of its customers.
Businesses that undertake the following activities are not required to register under the scheme:
the goods stored are owned by that business
the main business activities are transporting goods and those goods need to be stored temporarily as part of the overall transportation services
Fulfilment Businesses Regulations 2018, SI 2018/326
These rules are also not applicable to goods that are stored under a customs arrangement and are therefore not in free circulation in the UK. However, businesses will need to apply when the goods are released into free circulation if it continues to store those goods and they’re still offered for sale.
Fulfilment houses that are required to register for the scheme must apply before they start to trade. Failure to apply before commencing trade will result in the business being denied the right to trade as a fulfilment house and a
**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
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,250 in 2020/21 and 2019/20) to the spouse or civil partner where neither party is a higher rate or additional rate taxpayer. The legislation calls this the ‘transferable tax allowance’ but the GOV.UK website
Expenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and exclusively test. See the Wholly and
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.