Can input tax be claimed on a gold watch for an employee? Q. Our company plans to buy a gold watch as a gift to an employee as a reward for his 25 years of loyal service. It will cost £1,000 plus VAT. Can we claim input tax? A. Assuming you get an invoice from...

Supply of staff by agencies is normally a standard-rated supply for VAT purposes. However, it will be an exempt supply if it is the supply of services consisting of the provision of medical care by a person registered or enrolled in any of various specified professions, including those on: •the register of medical practitioners; •the...

One of many contentious areas of VAT is the treatment of certain types of food. In previous articles, we have often mentioned VAT cases that, to the lay person, make VAT law seem ridiculous. For example, the case about McVitie’s ‘Blissfuls’, which consist of a: •biscuit cup with a flat bottom base; •layer of chocolate...

You have just set up a new business, but as you invest in the product development and branding, you won’t be making any sales for some time. What is the position when it comes to claiming VAT on these start-up costs? Associate Kenny Logan from our Edinburgh office explains.

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...

When someone buys a business, they have the option of retaining the VAT number. But what are the pros and cons of doing so? Kenny Logan from our Edinburgh Office looks at the implications. If someone buys the trade and assets of a VAT-registered business, it can be treated as ‘transfer of a going concern’...

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...

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...

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...