Jay Cooke

The issue might be that the vehicle was purchased second hand. A new car adapted for disability use would be zero rated by the dealership. When the same car is traded in by the owner, the dealership acquires that vehicle without VAT (not zero rated, zero rate is a rate of VAT, I mean the vehicle is acquired without any VAT whatsoever as the seller is a consumer/individual who is not VAT registered, the seller cannot sell a car at zero or standard rate of VAT as they are not VAT registered. If the car was purchased under the 2nd hand margin scheme, the invoice will state "margin scheme applies" somewhere on the invoice, if that is the case, then technically the vehicle you bought was not zero rated, it was sold to you with VAT being charged on the sale but without the VAT showing on the invoice. Margin scheme works like this. Dealer buys trade in car from customer for £10k and manages to sell it for £11k. The profit margin is £1k and the dealer declares output tax on that £1k (£1k x 1 /6 = £166 VAT) but dealer not allowed in law to show the VAT, the sales invoice will just show £11k and wording that says "sold under margin scheme" or something to that effect. Have a look at the Notice again https://www.gov.uk/guidance/vat-relief-on-adapted-motor-vehicles-for-disabled-people-and-charities-notice-1002#sec8 but check out section 9 which talks about 2nd hand cars What it says is when you bought the 2nd hand car, the dealer could have just zero rated the sale to you (and thus qualify as an adapted vehicle) or they could have used the margin scheme whereupon they probably charged VAT albeit on the margin and not shown on the invoice. If the invoice clearly shows zero rated VAT then no issue, but if it makes reference to margin schemes or shows no VAT at all, then that may be why the garage are being a bit prickly about things. garage is perhaps being a bit unhelpful but clearly not prepared to take any risk whatsoever.

https://www.gov.uk/hmrc-internal-manuals/vat-trader-records/vatrec12000 VATREC12030 - Rounding on invoices and rounding at retailers: What do we mean by rounding up and down? The rules for this are simple: If the VAT on any transaction comes to less than 0.5 of one penny, it should be rounded down. If the VAT comes to 0.5 of one penny or more, it should be rounded up. This is the same system as that outlined in EU Council Regulation 1103/97, which sets out the rules for converting national currency values into Euro. However, if a trader proposes an alternative rounding method then it should be considered and allowed if it produces a fair and reasonable result.

Rosina It depends on what it is you are selling to the USA customer. You've not stated what it is you have supplied. It is probably an outside the scope of VAT supply, but I'd use T0 (zero rate) that way Sage will allow you to produce an invoice and also populate the VAT return correctly (Box 6 sales excl. VAT) and Nil in Box 1 (output tax due on sales). If you are supplying land or where performed services, then the VAT could be standard rated and your invoice is correct.

You have to declare output tax on any stock, assets or goods where the combined value is more than £5,000 net. So your van cost £13,000, assuming the current value is 50%, less than what you paid (£7,500) this is over £5,000 and you'd have to declare output tax on your final VAT return of £1,500.00 Of course, the value of the van will be much higher than in my example, you purchased it 4 months ago in April so will not have depreciated by my 50% example. You would also have to include the current market value of any tools, machinery, equipment and any stock of materials in this calculation. These rules exist primarily to stop traders from registering for VAT just so that they can reclaim input tax on purchases and then deregister. https://www.gov.uk/government/publications/vat-notice-70011-cancelling-your-registration/vat-notice-70011-cancelling-your-registration#section-7 "When you cancel your VAT registration, you usually make what is known as a deemed supply of the goods you have on hand. This means you may have to account for VAT on some of your business assets and stock on hand, depending on: what they are how you obtained them why you’re cancelling your registration You will not have to account for VAT if the total VAT due on the assets would be £1,000 or less.

The zero rate is for the installation of energy saving materials, repairs to existing systems are not going to fit the definition of installation, repairs are therefore 20%. Section 2.3 https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086#installations-of-energy-saving-materials "The relief applies to the services of installing energy-saving materials in residential accommodation. For example, where a customer employs a business to install energy-saving materials that the customer purchased directly from a retailer."

Depends. If you are renting the dwelling long-term, then it will be an exempt supply. You cannot opt to tax a dwelling. However, if you are renting the property on short term/holiday lets (AirBnB), then these supplies are automatically standard rated. You therefore need to be clear whether you are renting a home long-term or renting a holiday let short-term. There are also other direct tax implications depending on which you choose. If you are making long-term rentals which are exempt, you are required to perform a partial exemption calculation to determine whether or not you can reclaim input tax relating to the property rental business. The right to reclaim VAT is only ever on the basis you make taxable (VATable) sales, so where you don't make VATable sales, your entitlement to reclaim VAT is potentially restricted. Any business involving property should really involve seeking proper advice to ensure that you are exploring all the tax risk and opportunities.

Construction is a service, not a supply of goods, therefore you are limited to the 6 month rule. Even if you built a new Amazon style warehouse costing £1m, the whole structure is a service, not "goods" and the 6 month rule still applies. They cannot reclaim the VAT on the materials element either as those materials have been incorporated into the structure and the therefore are the goods "on hand or in stock at time of registration?" and the answer is no, they are not on hand or in stock, they have been used to build a structure.

Hopefully HMRC Admin will not remove the link, it has all of the answers required - https://www.accountingweb.co.uk/tax/business-tax/postponed-accounting-your-questions-answered You do not have to sign up for PVA, most freight agent just assume/default to using postponed VAT even if you are not aware. You must therefore enrol for the postponed VAT service with HMRC so that you can see your postponed VAT statements. Follow this HMRC link https://www.gov.uk/guidance/get-your-postponed-import-vat-statement and scroll down to green "start" button and then sign into your government gateway. If you do not have an EORI number then it will ask you to apply for one, assuming you have an EORI number, it will ask you to register for "CDS" (Customs Declaration Service", follow the links and answer the questions about your business (incorporation date, VAT number, address) if enrolling produces an error it is usually the address that is sensitive. Once you answer the questions correctly you will be granted access to the CDS platform. You need do nothing else regarding CDS. Go back to the above link (get my postponed VAT statements" and this time when you log in, you will be shown a screen with your postponed VAT statements, download each month and these are entered into your VAT return as boxes 6 and 7 and boxes 1 and 4. If you move your mouse/pointer to the top of that screen, the black banner with white text stating "view your customs financial accounts", if you click that banner/wording, you will go to another screen and here will be your C79 certificates. Download these and you can reclaim in box 4. C79's are all digital now as almost all freight agents use the CDS import software and they are all found via your government gateway.....but you must follow the HMRC link above or google "get my postponed VAT statements" as you cannot access these customs pages by just logging into your gateway, you must go via the link.
A further source of information is accountingWeb  

[Edited by Admin]

Angela The output tax on the sale of a commercial property is dealt in the exact same manner as any sale. You'll have a sales invoice (or more likely a completion statement), you declare the output tax on the VAT return as per date of invoice/completion statement. Whether you are on accrual or cash accounting, the way in which property is sold, you will have received the full funds on the day of completion/sale and/or a completion statement invoice issued.

https://www.gov.uk/guidance/vat-reverse-charge-technical-guide#construction-services-supplied-with-goods-or-other-services Have a read of the technical guide, section titled " Construction services supplied with goods or other services", otherwise, if there is an element that is CIS and an element that is not CIS, the whole supply falls under reverse charge (as a simplification/make mixed supplies easier to deal with). Also note in the same section the topic of splitting a contract between services/labour and materials only.