VAT registration threshold frozen at £85,000 until 2022
Following a call for evidence on the design of the UK VAT threshold (which is higher than most other countries), the government have decided to freeze the registration threshold at £85,000 until 2022. With Making Tax Digital for VAT arriving in April 2019, which only applies to VAT registered businesses with a turnover above the VAT registration threshold, this provides greater certainty.
For further advice on this matter, please contact me.
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Can i reclaim vat if my business purchases a car?
HMRC will usually accept a small amount of incidental private use, for example stopping off for a sandwich on the way back from a business journey, but beyond that they are highly likely to challenge any recovery of VAT on the car’s purchase.
Does VAT need to be charged on wage costs recharged to another business?
Several clients have asked this question over the years, and for a very good reason. There is no VAT on wages, so surely recharging wages to another business is VAT-free too?
Can any VAT be reclaimed when you take a client out to lunch?
Most readers are probably familiar with the general block on reclaiming VAT on costs associated with entertaining customers or suppliers. But are there any exceptions?