How do we code payments to unregistered subcontractors? Q. Our travel guide business uses the services of in-house employees, VAT registered subcontractors and non-VAT registered subcontractors to produce our online magazines. A colleague says that we should code payments to the non-VAT registered subcontractors as “zero-rated” on our system rather than “no VAT” but that...

Will I pay tax if I gift company shares to my sons? Q. I am the sole director and shareholder of a limited company, which holds a mortgage-free residential buy-to-let property. If I transfer all of the shares to my two sons at no cost, or even at nominal value, will I be liable to...

Is there VAT on garage rent? Q. We operate a hairdressing salon business. We rent the premises on a long lease, and this also includes two lock-up garages. We fully claim input tax on all property related costs, the lease is tenant repairing, and we earn extra income by renting out the two garages to...

Should VAT be charged when renting rent out a desk? Q. A business allows one of its subcontractors to use a desk and chair in its office, they also have use of the communal kitchen and toilets. The subcontractor pays the business a fixed amount each week, irrespective of how much time is spent there....

Sub-letting trading premises, should we charge VAT? Q. The landlord of our trading premises charges VAT on our monthly rent, and we claim input tax. We are planning to sub-let one of the floors to another business but are not sure if we should also charge VAT? If we don’t, does this mean we will...

Partner Andrew Wayness provides the answers in this month’s Q&A. Is a charity’s loss-making event exempt from VAT? Q. We are a charity that is registered for VAT. We recently held a fundraising event, treating the income as being exempt from VAT, but the event made a loss. Should we treat the income as standard-rated...

Is there VAT on gift to top salesperson? Q. You operate a car dealership business and have given a case of champagne to your best performing salesperson. Can you claim input tax on the cost of the champagne because each individual bottle cost you less than £50. Is this correct? A. Unfortunately, your interpretation of...

GDPR – What information do you hold on me? Q. If an employee wants to make a subject access request, must it be given in a particular format? A. The UK GDPR does not set out any formal requirements or suggestions for a valid subject access request. This means that a subject access request can...

Can services be zero-rated? Q. We have decided to build a bungalow next to our farmhouse so that my partners elderly mother can live in it and be close to us. We have obtained planning permission for the project and have appointed a builder to start the work. The builder will supply labour and materials....

Can a director take a company vehicle out of the business to sell? Q. A company director bought a car through his business on finance, it has been a company vehicle for a few years. The finance is now paid off, and he would like to sell it, but as the business is VAT registered,...