Specialist VAT Topics

The Capital Goods Scheme is a VAT rule that requires you to adjust the amount of VAT you reclaim on major capital assets over several years, depending on how you use them. If you purchase or create assets like property, expensive computers, or vessels costing above certain thresholds, this scheme...

5 min read

If your business makes both VAT-exempt and VAT-taxable supplies, you'll need to use a partial exemption method to work out how much VAT you can reclaim on overheads. The standard method doesn't always produce a fair result, particularly for businesses with complex operations....

4 min read

When you sell your business or part of it, you might not need to charge VAT on the sale. If certain conditions are met, the transfer can be treated as outside the scope of VAT entirely — this is called a Transfer of a Business as a Going Concern (TOGC). Understanding these rul...

5 min read

If your business deals with foreign currency transactions, you still need to convert all amounts into sterling (pounds) for VAT purposes. This applies whether you're buying from overseas suppliers or invoicing foreign customers. Understanding which exchange rates to use and wh...

4 min read

When a business or individual enters insolvency, VAT obligations don't simply disappear. Understanding how VAT is handled during insolvency procedures is crucial for directors and business owners facing financial difficulties. This article explains who becomes responsible for...

4 min read

If you run promotional campaigns, give away free samples, or provide gifts to customers or staff, you need to understand when VAT is due. In many cases, HMRC treats free items as taxable supplies even when no money changes hands. This article explains when you must account for...

5 min read

When your business exchanges goods or services rather than paying cash, you still need to account for VAT properly. Whether you're accepting a trade-in, swapping services with another business, or offsetting invoices against each other, HMRC treats these as taxable supplies and expects you to...

4 min read

If your business sells or accepts vouchers, it's important to understand how VAT applies to them. The rules changed significantly on 1 January 2019, replacing the old system of "credit vouchers" and "retailer vouchers" with a new framework based on "single-purpose vouchers" an...

4 min read