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Hi Sir
Hope you’re well – your lectures really are excellent.
Can I check whether the VAT lectures are for the current examination because there’s a note, on the lecture videos webpage, saying that this specific lecture was for the March 17 paper only?
Before watching this lecture I read the Kaplan F6 textbook and they don’t mention that exports of services are standard rated if supplied to non-registered customers overseas – they state that all exports of services are outside the scope of VAT.
So, are services of exports, to non-VAT registered customers overseas, still charged the standard rate of VAT by UK suppliers or has this changed since the lecture was recorded?
Thank you for your message, the only issue to note about the VAT lectures for March 2017 is that you must use the registration and deregistration limits for FA 2016 as in the course notes for June 2017.
In respect of supply of services my note is still valid, I can only assume that the Kaplan note has merely included the business to business rule to keep things simple.Thanks sir – really do appreciate your help.
Sorry to follow up with additional questions.
1. I understand that when a business opts to or is made to compulsorily de-register from VAT that they will have to pay output VAT on any goods purchased, which they had originally reclaimed input VAT on. However, the notes advise that this is waived if the corresponding VAT is less than £1,000, but is that £1,000 for each individual item or £1,000 for the collective value of goods? Further, does the same rule apply to those items/goods sold by a business as piecemeal, where input VAT had been reclaimed in the past.
2. Do vans and lorries get 100% input VAT recovery regardless of private use by employees (for example, employees driving vans privately, more than just to and from work)?
Large Companies and Quarterly CT Payments
If a company has been ‘large’ for a number of years, and then augmented profits fall below the time apportioned threshold of £1.5m how does this affect their tax administration? For example, if ABC Ltd has been large for many years, but then in the y-e 21 December 2015 it’s actual profits fell below £1.5million.
In the above scenario, the company would have already made two advanced quarterly payments, would it continue to complete the quarterly payments on the 14th day of the 13th and 16th month or would it suspend payments immediately? Further, would quarterly payments be necessary for the subsequent year given that the company was not ‘large’ in the CAP?
On deregistration the £1,000 limit applies to the total input VAT – not each item.
Only restrict the input VAT recovery on cars
Quarterly instalment payments are only required if the company was both large in the preceding accounting period AND it is estimating that it will be large for the current period
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