Wednesday, 28 November 2012

VAT Secret: Suppliers That...

Issue 7: Am I My Supplier’s Keeper?

Ermm..Yes you are.

I have heard this one so many times it’s no longer funny. It’s almost 11pm but I am compelled to write this before I go to bed.

Have you ever been told that the VAT responsibility rests solely with the supplier to the point that if the supplier charges you VAT incorrectly it's ok for you to recover it from HMRC as long as the supplier pays over the same incorrect amount as output tax?

I’m sure you know what I have to say about that. I will be diplomatic and simply say that this assertion is incorrect.

As a customer it is equally your responsibility to ensure that you do not recover VAT that has been incorrectly charged to you, so keep your eyes on those invoices from your suppliers. 

For case law and additional insights contact:
Marlon Appleton

Tuesday, 20 November 2012

VAT Secret: Hotel Room Booking

Issue 6: Booked a Hotel Room Lately?
I am happy to say that I have never booked a room and not show up, but let’s assume that you have; Following recent case law, if you make a deposit when you make the booking for an unspecified room then no VAT is chargeable if you decide not to turn up and the hotel charges you a “no-show” fee. So check your bills people.

Similarly, the booking fee/down payment itself is not Vatable until you are given a room.

Don’t you just love VAT? It’s oh so exciting!!! (No sarcasm on my part).

For further insights contact Marlon Appleton.

Wednesday, 14 November 2012

The Secret is Out: Issue 5

Issue 5: Do You Live Where You Work
I meant that literally, not in the sarcastic manner that your wives or husbands would often complain about.
If your utility bill is in the name of your company the electricity company may more than likely have your account listed as a business, which may not necessarily be incorrect. However if you also live at that premises you should submit a VAT Declaration to your utility company to reduce your VAT costs.  As the Meercats would say….Simples. 

For additional insights please contact Marlon Appleton.

Tuesday, 6 November 2012

The Secret is Out: Utility Bills

Issue 4: Check Those Utility Bills
Many are not aware of this tax. Then again why should you since it’s only supposed to be charged to businesses that consume above a certain level. 

Climate Change Levy or CCL is a tax on the electricity and gas that you consume. The cheeky thing about CCL is that VAT is charged on it as well. Yep, that’s right you pay tax on the tax. I have no idea how the government got away with that one.

I suggest that you check your utility bills to ensure that you are charged correctly. If your average daily electricity consumption is 33kwh or less then no CCL should be charged on your business bill.  Likewise, if the daily average gas consumption is 145kwh or less no CCL should be charged.

Private Residence
For households, no matter what your consumption level, CCL should never ever be charged on your bill. 

I have seen where businesses and residences are charged incorrectly so check your bills. You can go back years to demand a refund 

For more insight on the above contact Marlon Appleton.