HMRC

VAT & Construction Post-Brexit?

by Berthold Bauer on January 17, 2018

VAT accounted for nearly a quarter of all UK tax revenues in 2015/2016; so it’s virtually guaranteed it will remain in place after Brexit (VAT in one form or another being in place for many non-EU countries: Switzerland, Norway, Israel & now even the United Arab Emirates).

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Berthold BauerVAT & Construction Post-Brexit?

Autumn Budget 2017

by Berthold Bauer on November 24, 2017

The Chancellor has announced a new VAT relief alongside several other relevant statements:

–        Scottish Fire and Police services will no longer be liable for VAT, this will take effect from April 2018; bringing them in line with their counterparts around the United Kingdom.

–        The VAT registration threshold will remain at £85,000.00 for the next two years, despite suggestions it could be lowered following a report by the Office of Tax Simplification earlier in November

–       It was announced that there would be an “Accident Rescue Charities Grant Scheme”, this appears to be an extension to the 2014 Budget where it was confirmed that VAT relief would be granted to search and rescue charities; essentially a grant to help alleviate the VAT incurred.

In relation to the NHS, they have announced that a one-off £2.8bn of additional funding will be made available in the period of 2017-2020. The funding will be released in three tranches to the health service:

–        £350m 2017/18 immediate cash injection to help ease winter pressures

–        £1,650m 2018/19

–        £850m 2019/20

Additionally a £10bn package of capital investment in front-line services will be provided through to the end of parliament; presumably intended to support the STPs [Sustainability and Transformation Plans] that are currently active throughout the NHS.

Interestingly, the government announced that they are increasing the duty on so called ‘white ciders’ due to their low cost and high alcohol content, perhaps this will, indirectly over time have a positive effect on the NHS spend on treating alcohol related diseases such a liver cirrhosis.

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Berthold BauerAutumn Budget 2017

Brockenhurst College Case & application to the NHS

by Berthold Bauer on August 30, 2017

As a broad overview, the Brockenhurst College Case considered whether supplies of chargeable catering & entertainment could be considered to be ‘closely related’ to the supplies of education being made to students of the college.

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Berthold BauerBrockenhurst College Case & application to the NHS

Updates to HMRC Guidance: COS 14 & COS 71

by Berthold Bauer on June 21, 2017

Whilst there does not appear to have been an official announcement by them, HMRC have helpfully updated the guidance on COS Heading 14 Computer Services and COS Heading 71 Welfare Services on the online manual late last week. Whilst Heading 71 hasn’t provided much in the way of difficulties over the years, Heading 14 has certainly been an area of uncertainty for many.

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Berthold BauerUpdates to HMRC Guidance: COS 14 & COS 71

Construction VAT Update: ‘Demolition by stealth’

by Berthold Bauer on May 10, 2017

It is common for new builds to either begin life as extensions / partial build – either becoming full demolition by a gradual erosion of the planning process or due to unforeseen structural weaknesses. Zero rating for new builds hinges on the Demolition Test, a key aspect of the test being that planning consent is in place for the full demolition of any existing structures.

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Berthold BauerConstruction VAT Update: ‘Demolition by stealth’