HMRC is consulting on proposals for a new penalty based on the established principle that businesses are denied the right to reclaim input tax when they know, or should have known, that their transactions are connected with VAT fraud. This is often referred to as the ‘knowledge principle’.
From 1 October 2016, supplies of repair services carried out as the result of an insurance claim made to an insurer located outside the EU will be treated as taking place where they are effectively used and enjoyed, rather than where the provider of the insurance cover is based.
Etienne Wong (Old Square Tax Chamber) considers whether the Longridge judgment on ‘relevant charitable purpose’ is the final word on what ‘business’ means for VAT.
HMRC has updated Revenue and Customs Brief 17/2015 to reflect the extension for a further 12 months, until 31 December 2017, of the transitional period during which a pension fund and employer may continue to apply a 70/30 asset management/administration costs split in relation to VAT recovery fo
HMRC has published an overview of its new powers, introduced by Finance Act 2016 ss 123 and 124, to require overseas businesses trading through online marketplaces to register for VAT in the UK, appoint a UK representative, or provide security.
HMRC is consulting until 14 November 2016 on draft regulations setting out the detail of the approval scheme for users and dealers in raw tobacco, as introduced by Finance Act 2016. The scheme will come into effect on 1 April 2017, with the registration process due to begin in January 2017.
Letters of comfort and bad debt relief