HMRC is extremely strict on matters relating to VAT. This applies especially if your company happens to be on the wrong side of VAT investigations. If so HMRC has a greater tendency to spot discrepancies than never before.
Where you buy goods or services that are used only for business, the view of HMRC is that you can reclaim a fair and reasonable proportion of the VAT. But in some cases you can reclaim the entire amount.
Rise in the VAT from 17.5% to 20% has defenitely had a big impact on small businesses and households throughout the UK in terms of their quarterly VAT. At 17.5% the UK had the lowest standard rate of VAT and the only 0% rate on food of any major EU member state.
Value Added Tax (VAT) is a tax that is charged on most goods and services that are provided within UK. It is also charged on goods and some services that are imported from countries outside the European Union (EU), and brought into the UK from other EU countries. VAT is charged when a VAT-registered business […]