VAT
Private School Fees
Background Since VAT was introduced in 1973, private education has been exempt from VAT, meaning these fees have not been subject to VAT. Private schools have not needed to register for VAT, however, the government has announced proposed changes to ...
Invoicing abroad and the Place of Supply rules: What VAT should I charge?
Invoicing abroad As of 1 January 2021, the UK ceased to be a member of the customs union, and some of the VAT rules changed. VAT rules on EU imports and exports have broadly aligned with those for non-EU imports and exports. If you are not ...
Flat Rate Scheme
Flat Rate Scheme The Flat Rate Scheme (FRS) is a simplified VAT system whereby a business pays a fixed percentage of its VAT taxable turnover to HMRC. Your VAT taxable turnover is the total of all sales that would either have VAT added to them or are ...
VAT - Standard Scheme
Standard scheme for VAT Under the standard VAT scheme, you pay HMRC all the VAT you invoice to a customer, less any UK VAT incurred on qualifying expenses. VAT on expenses is called Input VAT. VAT on sales is called Output VAT. Suppose you had one ...
Recharges and disbursements
Recharging expenses Expenses incurred in performing your duties for a client, such as postage, travel, parking, and hotels, do not qualify as disbursements. They are known as recharges. They typically arise when the client has agreed to pay a fee for ...
Should I register for VAT?
What is VAT? VAT stands for “Value Added Tax”. It is a tax that VAT-registered businesses charge when they supply their goods and services in the UK, but there are some exceptions. VAT does not apply to certain services because the law says these are ...
How do I register for VAT
How do I register for VAT? You must register for VAT if your annual sales are £90,000 or above, and you may be able to voluntarily register even if your sales are under £90,000. Voluntary registration for service-based companies could be beneficial ...
Splitting a business to avoid VAT - Disaggregation
VAT disaggregation Artificially splitting a business that makes taxable supplies to avoid crossing the VAT threshold (£90,000) is called disaggregation. HMRC would likely deem such a move tax avoidance. Where there were always initially two separate ...