What is VAT?

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What is VAT?

Well EU law still stands for now in the VAT booklet explaining the system as it stands today!

Value Added Tax (VAT) is a tax businesses have to charge when they make business supplies (that is, they sell goods or services) in the United Kingdom (UK) or Isle of Man.

Examples of business supplies include:

  • selling new and used goods, including hire purchase
  • providing a service, for example, hairdressing or decorating
  • charging an admission price to go into buildings
  • a self-employed person providing supplies, for example, some salesmen and subcontractors

VAT is also charged on:

  • goods, and some services, which are imported from places outside the European Union (EU)
  • goods and services which come into the UK from another EU member state

 

You should read HMRC Notice 700/1   if you:

  • are based in the UK and make business supplies of goods or services here
  • make sales from the EU into the UK
  • acquire goods into the UK from the EU
  • sell certain assets
  • make business supplies of goods or services in the UK, but are not resident here

When do I have to register for VAT?

You have to register for VAT when the total value of your:

  • taxable supplies
  • distance sales
  • relevant acquisitions

goes over the current registration thresholds.

For details of how to register or if you think you may have exceeded the threshold already call Lindsay on 07584 706664

 

Marriage Allowance 

Want to save a bit of tax as a couple?

How it works

Marriage Allowance lets you transfer £1,100 of your Personal Allowance to your husband, wife or civil partner – if they earn more than you.

This reduces their tax by up to £220 in the tax year (6 April to 5 April the next year).

To benefit as a couple, you (as the lower earner) must have an income of £11,000 or less.

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