The tax gap for the 2019/20 tax year is 5.3%, which represents £35 billion, according to statistics recently published by HM Revenue and Customs (HMRC). The total tax gap for Value Added Tax (VAT) is £12.3 billion.
The government is introducing new rules from 1 April 2022 which require large businesses to notify HMRC when they take an uncertain tax position. The taxes within scope of the requirement to notify are Corporation Tax, Income Tax (when returned in a Partnership or PAYE return), and VAT.
HMRC has published Revenue and Customs Brief 11 (2021): VAT liability of Coronavirus (COVID-19) testing services, explaining the rules for the VAT treatment of COVID-19 testing services.
The Government has announced a new VAT penalty regime which introduces changes to the penalty processes for both late VAT return submissions and late payments, to apply from 1 April 2022. Our blog article covers the changes coming into force under the new system.
From July 2021, the VAT rules on EU cross-border business-to-consumer (B2C) e-commerce activities will change. Here you can access the European Commission’s published guidance on the new rules.
The UK government’s VAT deferral new payment scheme for settling VAT payments deferred between 20 March and 30 June 2020 due to COVID-19 is now open for businesses to voluntarily opt-in.
In a bid to tackle fraud, the VAT domestic reverse charge for construction services is being introduced in March 2021. This will impose a significant administrative burden on businesses affected by the change.
Brexit Alert: New UK VAT rules for imports in consignments up to £135
From January 2021, EU distance selling rules will no longer apply in the UK, low value consignment relief will be abolished and the collection of VAT on imports of goods from outside the UK in consignments not exceeding £135 in value will move from the point of importation to the point of sale.
HMRC has updated its guidance explaining how to settle VAT payments deferred between 20 March and 30 June 2020 due to COVID-19.
The European Commission has published Explanatory Notes on the new EU VAT rules for e-commerce which come into effect on 1 July 2021. We look at what businesses need to do to prepare for the changes.