In this edition of the VAT Update from Tax Essentials for Advisors, Ed Thompson looks at the latest VAT developments, tribunal decisions and practical issues for businesses and tax professionals.
HMRC has updated VAT Notice 708 to include electric vehicle charging points among the items it accepts may ordinarily be incorporated into a dwelling, with potential implications for VAT relief on building materials supplied as part of qualifying construction work.
Ed also examines two recent VAT cases: one considering whether cash flow difficulties amounted to a reasonable excuse for late payment of VAT, and another involving the recovery of almost £478,000 of input tax on a car intended for use in a luxury car hire business.
Finally, this edition’s tax tip looks at the practical problems advisors are experiencing with HMRC’s online VAT registration process and why early registration and contingency planning can be particularly important for time-sensitive transactions such as a transfer of a going concern (TOGC).
Watch the full VAT update for the key developments and practical points to consider.
