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.
25 August 2026| CATEGORIES: Uncategorised| TAGS:
HMRC has now confirmed its revised position on the VAT treatment of supplies of locum doctors in Revenue & Customs Brief 6 (2026). The revised position potentially creates a significant VAT recovery opportunity for businesses that have previously charged VAT on supplies of qualifying locum doctors. The Brief provides greater certainty on which supplies may qualify for exemption, although businesses will still need to consider carefully the precise nature of the services supplied and the wider VAT consequences of changing their treatment.
13 August 2026| CATEGORIES: Capital Goods Scheme, New legislation, VAT| TAGS: Capital Goods Scheme, partial exemption, property VAT
The UK Government has introduced significant changes to the VAT Capital Goods Scheme (CGS), with effect from 29 July 2026. Computers have been removed from the CGS entirely; and the expenditure threshold for land, buildings and civil engineering works has increased from £250,000 to £600,000, excluding VAT. The changes are intended to simplify the VAT rules and reduce the administrative burden associated with monitoring and adjusting input tax recovery on capital assets over a number of years.
5 August 2026| CATEGORIES: e-invoicing, Milestone, Peppol, UK| TAGS: e-invoicing, Peppol, UK
The UK Government has confirmed that Peppol will be the core interoperability network for the UK’s e-invoicing regime from April 2029. This provides businesses and software providers with much-needed certainty over the technical framework that will underpin the new requirements.
24 July 2026| CATEGORIES: domestic electricity, VAT rates, zero rate| TAGS: domestic electricity, VAT rate cut, zero rate
The UK Government has announced plans to remove VAT from domestic electricity bills from 1 October 2026. Qualifying domestic electricity supplies will become zero-rated for VAT purposes, replacing the current reduced rate of 5%. Energy suppliers will need to consider how the change will affect invoicing, contracts, VAT reporting, systems configuration and customer communications.
26 May 2026| CATEGORIES: 5%, Summer 2026, Temporary VAT rate reduction| TAGS: 5%, Cost of living, Summer 2026, Temporary VAT reduction, VAT
The government has announced a temporary reduction in the rate of VAT from 20% to 5% on certain children’s meals, entertainment tickets and family attractions for the 2026 summer holiday period. The changes will apply from 25 June 2026 to 1 September 2026 (inclusive).
14 January 2026| CATEGORIES: New VAT guidance, VAT exemption| TAGS: locums, New HMRC policy, vat exemption, VAT refund
HMRC has issued Revenue & Customs Brief 9 (2025) (RCB9) following its loss in a First-tier Tribunal case concerning the VAT treatment of supplies of locum medical practitioners. RCB9 sets out the circumstances in which businesses may be entitled to reclaim overdeclared output VAT on supplies of locum doctors.
9 December 2025| CATEGORIES: B2B, e-invoicing, UK| TAGS: digital transformation, e-invoicing, HMRC
The government announced in the Autumn Budget 2025 that e-invoicing will become mandatory for all VAT invoices from April 2029. This represents a major shift in how UK businesses issue, receive and process invoices. Businesses should start preparing now.
