Following EU Tribunal Cases (VAT being a European Tax and largely unaffected by Brexit); HMRC have changed their stance on many forms of compensation payment – and with particular regard to the Construction Industry – how Liquidated Damages are treated.
HMRC have updated their guidance today to confirm that all businesses, regardless of annual turnover, will be required to register for Making Tax Digital as of 1st April 2022. This will extend to any businesses which have registered voluntarily for VAT.
Following Germany’s decision to reduce VAT from 19% to 16% in order to boost consumer spending and Rishi Sunak’s contemplation of a similar action here in the UK, what are the chances and the pundit’s opinions?
The PM announced on Friday a VAT deferral to support UK
businesses in this unprecedented time. The deferral will hopefully help
many businesses to stay afloat during this difficult period, but it is worth
reminding all businesses that this will not abolish any VAT due, it will
simply defer the date it is due for payment and exists to help those in
financial difficulty or hardship. To summarise how this deferral will
work in practice: