Tax and Accountancy Useful Information | Guides for individuals and business owners

Recovering VAT on Business Meals: The Difference Between Subsistence and Entertaining

Regardless what size a business is, it will almost certainly incur costs to buy food and drink when staff travel, and for entertainment. The VAT rules applicable to these are not straightforward and can require an element of judgement when calculating what can legitimately be reclaimed from HMRC. In order to reclaim VAT incurred, a business has to have sufficient appropriate evidence of the VAT it has paid out.

Top Five VAT Errors in your SIPP or SSAS Pension

People with larger pension pots, particularly people who own their own business, can choose to move their savings into a SIPP or SSAS pension scheme. The advantage of this is that they can select exactly what their pension fund invests in – and this can include direct ownership of Commercial Property. However, investing in commercial property can bring VAT obligations. Depending on how the underlying trust that governs your SIPP or SSAS is constituted, you may be obliged to register your pension fund for VAT and make quarterly VAT Returns to HMRC.

What are the VAT risks when investing in Commercial Property? [Series: What the VAT?]

Commercial Property, as an asset class, makes an attractive investment option for many people. Larger businesses can have subsidiary companies that buy property investments to rent back to their own trading operations, and business owners can use their pension funds to acquire property investments that support their trading companies’ growth.But what are the VAT risks when investing in Commercial Property?

Is VAT applicable when selling or leasing a Commercial Property? [Series: What the VAT?]

There are two key areas that determine if you have any VAT issues to manage for your commercial property: 1) How did you use the property? and 2) How will the buyer use the property? To determine whether your commercial property is exempt from VAT or not when selling or leasing, there may be several factors to consider.

Option to Tax: Common Myths Debunked [Series: What the VAT?]

There are a few facts about Option to Tax that are worth setting out. Is it optional? Can it be easily revoked? Do HMRC need to be notified? Find out more about the Option to Tax as we look to debunk the common myths about the tax election related to commercial property.

Option to Tax for commercial property: What you need to know [Series: What the VAT?]

As a general rule, owners cannot charge VAT when selling their property, and landlords cannot charge VAT when renting it. This is because the default VAT position of Commercial property is Exempt. If a property owner wishes to change this, they can make a tax election called the Option to Tax. Essentially, the landowner promises to charge VAT on all rental income, and/or the sale of the property itself, for at least twenty years.