VAT Registration Limits 2018/2019

VAT Registration Limits For the current year 2018/2019 your business can turnover £85,000 before it exceeds the limit required to register for VAT. This VAT Registration Limit changes each year on 1 April, so if you run a business you should keep an eye on the annual registration limit to understand whether you have been affected. (more…)

Distance Selling Thresholds Explained

Who is Affected by Distance Selling Rules? Distance Selling Threshold rules affect e-commerce businesses that sell goods over the internet, TV or mail order to consumers (not businesses) in countries in the EU. It does not affect digital businesses who sell digital products such as eBooks and Courses. These business will need to follow the (more…)

VAT Advice for UK Amazon FBA Sellers

With the rise of online marketplaces consumers have become considerably more comfortable buying online and businesses have been given the ability to sell not just within their own country but overseas as well. Amazon FBA facilitates this process allowing business to reach potential customers in Germany, Italy, Spain & France. But where there is such huge (more…)

VAT on Exports to Non EU Countries

VAT is a tax on goods used in the EU, so if goods are exported outside the EU, VAT is not charged. You can zero-rate the sale, provided you get and keep evidence of the export, and comply with all other laws. You must also make sure the goods are exported and get the evidence within three (more…)

Vat on Exports to EU Countries

If you sell goods to someone in the EU, you may need to charge them VAT depending on their circumstances. Here’s what to do in some of the common circumstances UK businesses find themselves in. A Sale by a UK VAT Registered Business to someone who is also VAT registered in another EU Country VAT (more…)

What is the VAT Reverse Charge?

The VAT Reverse Charge simplifies the VAT process where services are supplied between the UK and other EU countries.  The reverse charge rules generally cover B2B transactions across EU member states. When a UK VAT registered business supplies a service to another member state, then the UK business would normally be required to register for (more…)

How to Calculate VAT on Mileage Claims

The HMRC rules around calculating VAT on mileage claims can be confusing. Here’s the correct way to calculate your VAT on mileage claims in your business and what you’ll need to back up your claim. When any business is VAT registered they are entitled to claim back the VAT they have paid on expenses. So (more…)

Can I Claim VAT on Petrol?

VAT is always a tricky area to navigate, especially when it involves petrol. Why? Because HMRC know its a hard area of them to police! Here are the HMRC approved options.

How to Record the Fuel Scale Charge in Xero

One way to record the fuel scale charge in Xero is to use a manual journal. Here is an example of a vehicle which falls into the CO2 band of 200 – 204 and these are the figures that need to be included in the fuel scale charge journal on Xero: CO2 band VAT fuel (more…)

HMRC VAT Fuel Scale Charges

The HMRC VAT Fuel Scale Charge is a VAT adjustment a business needs to make if they claim back VAT on fuel they provide their employees for ‘free’ or via a fuel card. What is the HMRC VAT Fuel Scale Charge? Some businesses choose to provide their staff with the added benefit of ‘free’ fuel or (more…)