HMRC Admin 32 Response

Hi,

Currency other than sterling is a chargeable asset and its disposal can give rise to a chargeable gain or an allowable loss.  

If you are resident in the UK, then you may have Capital Gains Tax to pay on the conversion to pounds sterling.  

Have a look at CG78300 onwards for more information.

CG78300 - Foreign currency

Thank you.

Hi,

If you receive your bonus through PAYE, then this will be taxed after a month's worth of allowances have been applied. When you begin working again, any tax overpaid as a result of unused allowances and rate bands will be refunded through your wages.

Alternatively, you can claim a tax refund while unemployed by completing a P50, though some conditions may apply.

You can find more advice here:

Claim back Income Tax when you've stopped working (P50)

Thank you.

Hi,

The only exceptions where VAT would not be charged is if there were internal charges within the same legal entity or if there was was charges between companies within the same VAT group.

Please see below:

VATSC02140 - Basic principles and underlying law: Transactions which fail to be supplies and supplies disregarded for VAT purposes

Group and divisional registration (VAT Notice 700/2): 5. Group registration — accounting for VAT

Thank you.

Hi,

The only exceptions where VAT would not be charged is if there were internal charges within the same legal entity or if there was was charges between companies within the same VAT group.

Please see below:

VATSC02140 - Basic principles and underlying law: Transactions which fail to be supplies and supplies disregarded for VAT purposes

Group and divisional registration (VAT Notice 700/2): 5. Group registration — accounting for VAT

Thank you.

Hi,

Based on the Place of Supply Rules your supplies will be Outside The Scope of VAT amd hence there will be no requirement to register for VAT.

Please see below:

Place of supply of services (VAT Notice 741A): 6. The place of supply rules for services

You can register for VAT voluntarily if you wish.

Please see section 2.9 below:

Who should register for VAT (VAT Notice 700/1): 2. Basic principles

Thank you.

Hi,

A business which is VAT registered and making taxable supplies are required to charge VAT and account for the VAT to HMRC.
If your supplier was waiting for their VAT number to be issued by HMRC then they should have been have charging VAT during this time and there is guidance for suppliers who are in this situation.

Please see the guidance below:

Who should register for VAT (VAT Notice 700/1): 5. Accounting for VAT

As they provided a service to you with a tax point after their Registration date they are required to account for the VAT on this supply.

However the decision as to whether you make this additional payment is your decision.HMRC only require the VAT to be accounted for by the supplier and so the requirement to pay the supplier will be a dispute between your supplier and yourself.

Thank you.

Hi,

Normally it is the position where the landlord has a secondary metre installed and the landlord is billing the tenant for the electricity used.
In this situation the  charges to the tenants for the gas and electricity they use are consideration for separate supplies of fuel and power. These supplies will be standard-rated unless the fuel supplied is of a de-minimis quantity, in which case the supply will be subject to the reduced rate.

So if you as the tenant are charging for the known usage of electricity of another tenant back to the landlord then the liability will also be 20% VAT unless it is of a deminimus quantity where it will be 5%.

Please see below:

Fuel and power (VAT Notice 701/19): 3. Qualifying use

Thank you.

Hi,

If your business belongs in Canada and you are supplying IT services to UK businesses then this should be Outside The Scope Of VAT, meaning you would not be required to register for VAT in the UK.
The UK business customer would account for the VAT under the reverse charge procedure instead of your business needing to register for VAT in the UK.

Please see the guidance below:

Place of supply of services (VAT Notice 741A) - 5. Reverse charge

Thank you.

Hi.

In order for the Place of Supply Rules to be applied correctly the supplier will need to accurately define the services being supplied and then establish the Place of Supply treatment.
If the supplier has judged that they are supplying a hire service then this would initally come under the General Rule of Services.
However if the services are used and enjoyed in the UK then the Place of Supply will move to the UK.

Please see the information below:

Place of supply of services (VAT Notice 741A): 6. The place of supply rules for services

Place of supply of services (VAT Notice 741A): 13. Use and enjoyment

The supplier would also need to establish whether a single supply or a mutiple supply is taking place in order to decide the correct VAT liability.

Please see below:

VATSC11113 - Supply: Single and multiple supplies: HMRC’s approach: The general approach

Thank you.