Weekly tax highlights ― 6 September 2021

Produced by Tolley

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Weekly tax highlights ― 6 September 2021
  • Indirect taxes
  • Government to proceed with revoking VAT public bodies order
  • HMRC updated guidance: Accounting for import VAT on the VAT return
  • VAT concessionary treatment for counsel's fees
  • Updated HMRC guidance for taxable and non-taxable trusts
  • Trust Registration Service opens for non-taxable trusts
  • HMRC Trusts and Estates Newsletter: September 2021
  • Consultations
  • Scotland's first framework for tax and tax policy in relation to the Scottish Budget 2022/23
  • More...

Weekly tax highlights ― 6 September 2021

Indirect taxes

Government to proceed with revoking VAT public bodies order

Following a short consultation from 20 July 2021, the government has confirmed that The Value Added Tax (Treatment of Transactions) (Revocation) Order 2021 will be introduced with no changes.

Alongside considering wider reform to public sector VAT refunds, on 20 July 2021, the government published a draft Value Added Tax (Treatment of Transactions) (Revocation) Order 2021, which would revoke the VAT (Treatment of Transactions Order 1992, SI 1992/630, with effect from 21 October 2021. The Government has now concluded, following the closure of the consultation, that it will proceed to make that Order without any amendments. The measure follows the decision in Northumbria Healthcare NHS Foundation Trust, which concluded that any government department or NHS body that operates a salary sacrifice scheme for cars, and which had recovered 50% of the VAT incurred, would be entitled to make a claim for the remaining 50%. This Order will remove what the government describes as this 'unwelcome interaction'.

HMRC updated guidance: Accounting for import VAT on the VAT return

HMRC has updated its guidance on accounting for import VAT on the VAT return, to address a problem with monthly VAT statements which has caused difficulties for businesses which usesimplified declarations for imports.

Where businesses import goods into the UK using simplified declarations, they are required to submit their supplementary declarations by the fourth working day of the month following the month of import.

Monthly VAT statements will show the total import VAT postponed for the previous month. HMRC has, however, identified an issue where entries are not being allocated to the correct monthly VAT statement and is actively seeking a solution to this problem. In the meantime, businesses have two options:

  1. they can usethe figures on their import VAT statements to complete their VAT return, or

  2. if they can identify the affected entries, they can reallocate them to the correct monthly statement and

Popular documents