VAT Notes No 4 2010
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everyone responsible for VAT in your business reads this newsletter.
Imports, Exports and Transit:
the VAT rate increase may affect guarantees, waivers and deferment
February 2010 edition of the Community/Common Transit and TIR Newsletter
Revenue & Customs (HMRC) explained that some guarantees,
guarantee waivers, and deferment limits may need to be increased to
account of the VAT standard-rate increase from 17.5 per cent to 20 per
4 January 2011.
you expect to use the
Community and Common Transit (CT) procedure on or after 4 January 2011
need to ensure that your guarantee reference amounts are set at a
level to cover the increased VAT rate. Limits are not automatically
so please check now to avoid your goods being stopped.
your guarantee or to obtain new certificates please contact the
Transit Office (CCTO) at HMRC National Simplifications Team,
Transit Office, Custom House, Main Road, Harwich CO12 3PG.
further information go to www.hmrc.gov.uk and search for 'TIR
Reverse charge accounting for
businesses selling or purchasing emissions allowances in the UK
1 November 2010, the temporary zero-rate for emissions
allowances was replaced by the reverse charge accounting mechanism at
standard-rate. It operates in a similar way as the reverse charge
mechanism for mobile phones and computer chips (except for the
information about this, please refer to the Revenue &
Customs Brief 35/10.
may also find Notice 735 VAT
reverse charge for mobile phones and computer chips
Beat the rush and make the switch to filing your VAT Return online
day more businesses are switching to HMRC’s VAT
Online to file returns and pay their VAT.
already filing VAT Returns online, why not give it a try? If you switch
online service now you will save time and, in some cases, you'll get
to pay the VAT too. Whether you are new to HMRC Online Services, or
the service before, enrolling for the VAT Online service is easy. It
take a few minutes. Go to www.hmrc.gov.uk and look at the Do it online
Select Register and follow the instructions.
VAT online service offers
lots of useful features:
online form looks the same as the paper
method to calculate the VAT due or repayable is the same.
accuracy as it helps avoid mistakes
amounts in boxes 1, 2 and 4
and HMRC calculate boxes 3 and 5 for you.
can review the return before you submit
that the figures calculated on-screen and displayed in boxes 3 and 5
same as the figures you have calculated for yourself.
can file your return at any time of day
is no need
to worry about your return being lost or delayed in the post.
on-screen message will let
you know HMRC have received it safely
should receive the message soon after you submit the return
but, at busy times, there may be a short delay. To avoid this, HMRC
that you file your return a few days before the due date. However, if
a delay, please do not re-submit the return.
can look up a copy of the VAT Returns you
that are filed online after 22 November 2009 are retained
for 15 months. If you want to keep a copy for your records, you can
print your return or store it electronically.
can sign up to get an
email to remind you when your return is due
will send you an email about six weeks before the return is
due. This will be the only prompt to tell you that it’s due. Set up
address on the ‘At a glance’ page – follow the links for
email address’ and ‘VAT messages’.
– VAT Input Tax toolkit
has developed a series of toolkits to
highlight common errors made, how to avoid them and what you need to do
things right. The new toolkit for VAT Input Tax will help you complete
VAT Input Tax toolkit is in
PDF format and is available from the website. Go to
have designed it to be easy to use and would welcome your feedback on
includes a checklist, explanatory notes and links to further guidance
on the website. HMRC intend to publish two more VAT toolkits this year
Partial Exemption and VAT Output Tax.
you would like to read
some background information about the toolkits go to
toolkits to help reduce errors -
Update to VAT Notes 3 and factsheet VAT FS1
to VAT Notes 3 of 2010
an article 'If you file online, do we have your email address?' HMRC
that they will email you a reminder two weeks before the due date of
return. This was incorrect. HMRC should have said that they will email
reminder six weeks before the due date of your
return. HMRC apologise
for any confusion caused.
VAT – what you can and cannot claim: paid VAT before you registered?
issues a factsheet, VAT FS1 What you need to know about VAT to all
registered businesses. The factsheet states that ‘In some cases, you
reclaim VAT you paid on goods you bought up to three years before you
1 April 2009, the time limit was increased to four years.
will be updated as soon as possible. HMRC apologise for any confusion
New and revised Notices
check this list to decide if you need
any of these publications.
and revised notices
Freight Simplified Procedures (CFSP)
of books etc.
of supply of services (before 1 January 2010)
further advice about VAT
find further information on the HMRC website
can contact HMRC by
phoning 0845 010 9000 Monday to Friday 8.00 am to 8.00 pm. If English
your first language, please say so when you call.
hoffech siarad â rhywun yn Gymraeg, ffoniwch 0845 010 0300, dydd Llun i
Gwener 8.00 am i 6.00 pm.
you have a Textphone (for
deaf, hearing impaired or speech impaired customers) 0845 000 0200.
have a range of
services for people with disabilities, including guidance in
audio and large print. Most HMRC forms are also available in large
Please contact us by phone if you need these services.
Charter explains what you can expect from HMRC and
what HMRC expect from you. For more information go to Your Charter.
you are unhappy with the way HMRC have handled your affairs (because of
or mistakes, for example) please tell the person or office you have
they are unable to sort things out, ask for your case to be referred to
complaints team. For more information about complaints procedures, go
www.hmrc.gov.uk and under‘quick links’ select ‘Complaints &
notes are for guidance only and reflect the position at the time of
They do not affect any right of appeal
About the Author
© Crown Copyright 2010.
A licence is needed to reproduce this article and has been republished
for educational / informational purposes only. Article reproduced by
permission of HM Revenue & Customs.
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Article Published/Sorted/Amended on Scopulus 2011-01-13 17:48:53 in Tax Articles