VAT News

The Budget – Key VAT points

23.05.2015

VAT registration thresholds - From 1 April 2015 these will be increased from £81,000 to £82,000 and the deregistration threshold from £79,000 to £80,000.

VAT refunds for Hospices - In the Autumn Statement, the Chancellor announced a VAT refund scheme to put hospices on a similar footing to the NHS. This will be an opportunity for hospice charities to recover significant amounts of VAT that has been historically blocked.

We now have the legislation in place and have met with Hospices UK to clarify the wider impact but it is clear that from 1 April 2015 charities providing palliative care will be able to reclaim VAT on their costs in respect of their non-business activities. Organisations that might be affected should start recording VAT on costs so they are able to make these claims going forward and need to consider how this change will impact on building plans in relation to any hospice going forward to maximize the VAT recovery benefits.

If you would be interested in discussing this in more detail do contact julie.rawlinsonsmith@centurionvat.com for a chat or to register your interest in an update session planned on the subject.

VAT deductions relating to foreign branches - In the past, businesses that have overseas branches have been allowed to increase their VAT recovery by including the foreign branch’s supplies in their partial exemption calculation. Legislation will be amended, with effect from 1 August 2015 so that businesses with a partial exemption year commencing on or after that date businesses will not be able to include foreign branch supplies to increase the recovery of VAT on UK costs. 

This change will only apply to partially exempt businesses and as such any impact should be limited to the banking and financial sector where such organisations have overseas branches.  For more detail please follow this link to HMRC

read more »

 


We are part of the Xeinadin Group. The firm of the future!