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 principles regarding who is the true recipient of a supply, because the party who pays for the supply may not necessarily be the recipient of the goods / services supplied. It is very important that the parties determine who received the goods / services supplied, asthe recipient is the only party entitled to recover VAT incurred.
Some typical examples of situations where the recipient of the services may be unclear are explained below together with HMRC or the courts’ view on who is the recipient of the supply.
Viability studies are usually requested by a bank or other financial institution considering lending money to, or investing in, a client. Typically, these types of studies are undertaken when a client requires a new loan or extension to an existing loan, or if the borrower has gone into receivership. It can be difficult to decide in these circumstances who is the ‘true’ recipient of the supply. For details, see the Holding companies ― who is the recipient of the supply? guidance note.
Service companies are often set up in order to provide services to a client using a single employee (contractor). The contractor only provides services to the client and would be viewed asbeing employed by the client if the services were not provided by a service company. This arrangement enables the client to make payments to the service company, rather than the individual, without being required to deduct PAYE or
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This guidance note explains how to calculate the amount of tax that arises under the lifetime charge. In general terms the lifetime charge will apply to individuals who transfer property into a trust that is subject to the relevant property regime. See the Chargeable transfers and Occasions of
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
Business asset disposal relief (previously known as entrepreneurs’ relief) is a capital gains tax (CGT) relief that allows business owners with chargeable gains on qualifying business assets to pay CGT at a rate of 10%. For disposals made on or after 11 March 2020, the relief is available on up to
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