24 September 2026| CATEGORIES: domestic electricity, VAT rates, zero rate| TAGS: domestic electricity, energy suppliers, HMRC, VAT rate cut, zero rate
A temporary zero rate of VAT will apply to qualifying supplies of electricity from 1 October 2026 to 31 March 2027. With the zero rate due to take effect on 1 October 2026, affected businesses have a short period in which to complete their implementation work. Changes to VAT rates can create practical challenges, particularly where businesses need to distinguish between supplies made before and after the effective date.
23 September 2026| CATEGORIES: Education, HMRC policy, VAT exemption, VAT refunds| TAGS: alternative providers, fiscal neutrality, further education, higher education, VAT refunds
Alternative providers of higher and further education may now be able to reclaim VAT on supplies previously treated as standard-rated, following a significant Court of Appeal ruling. HMRC has confirmed that businesses in the same position as the taxpayers in St Patrick’s International College can submit claims for a refund while HMRC’s appeal to the Supreme Court is pending, although HMRC continues to maintain that such supplies are standard rated.
15 September 2026| CATEGORIES: New HMRC Guidance, UK VAT, VAT Groups, VAT refunds| TAGS: Overseas businesses, UK VAT refunds, VAT Groups
HMRC has changed the rules governing UK VAT refund claims made by non-UK businesses that are members of a VAT group in their country of establishment.
The change means that each non-UK VAT group member must now submit its own claim for UK VAT that it has incurred. HMRC will no longer accept a claim from a VAT group’s representative member unless that representative member itself incurred the VAT. HMRC will reconsider certain claims for VAT incurred from 1 January 2021 that it previously rejected because the representative member did not submit the claim.
