John sold a machine which he had used in his business before he was VAT registered. He was told that he should have charged VAT on the sale and that he must now account for it out of the proceeds. Is this true? Partner Kevin Ferguson discusses in this article. When a VAT registered business...

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...

You’ve purchased an expensive personalised number plate which included VAT.  A business associate has told you that because the registration number has a connection with the business, you can reclaim the VAT.  Are they correct?  Bruce Currie takes a closer look below. VAT claim allowed Unlike VAT paid on the purchase of cars, there’s no...

You are considering leasing instead of purchasing cars for your business. This will improve cash flow and, according to the salesperson, allow you to reclaim VAT that you would not otherwise be entitled to. Is this correct?  Naomi Swan explains the rules. Generally, VAT paid on the purchase of cars for use in your business...

Although the Chancellor announced an increase to the VAT registration limit in the Spring Budget 2024, it was fairly modest. As a service business if your turnover exceeds the new limit, can you legitimately avoid having to register?  Associate Jayne Rogerson discusses the implications. Until 1 April 2024, the VAT registration turnover threshold had been...

Can music business be split into two and deregister? Q. My business trades as a limited company, selling musical instruments and giving piano lessons. All lessons are given by me, as I am the sole director and shareholder. The annual fees from lessons are £50,000 but the annual sales of instruments has fallen to £70,000....

Your business sells vouchers to customers that can be redeemed against goods or services that you sell in the future. But how should you account for VAT on these vouchers?  Naomi Swan provides the answer. What is a voucher? Many vouchers issued by your business will be electronic rather than in paper format. This is...

Your charity has received a grant to help it to fund specific projects and you are worried that the strict conditions imposed will make it subject to VAT. Is this the case and what checks can you make to ensure there are no problems?  Gail Trojan provides the answers. Status of grant provider The first...

Your business is registered as a VAT group and is partially exempt. All cars are leased through one group member that only has taxable income. How much input tax can you claim on the leasing payments and what other issues must you consider?  Associate, Bob Johnstone from our Galashiels office explains in this article. Even...

A trustee of an environmental charity has launched a fundraising appeal to ask for donations from supporters. One tree will be planted in a city centre for each £20 donation. Are the donations subject to VAT as a supply of services?  Naomi Swan explains in this article. What is a donation? VAT is not payable...