01743 271071 tax@morganjones.co.uk
Charitable giving may be vatable

Charitable giving may be vatable

I recently became involved with a situation where HMRC demanded output tax on donations received by a charity. I found this strange, as donations are generally outside the scope of VAT because the money received does not relate to the supply of goods or services. The...
Artificial VAT Assessments

Artificial VAT Assessments

This is a tale of two associated companies and HMRC’s disallowance of nearly £50,000 of input tax, resulting in the VAT officer involved getting a very nice little bonus, so read on….. VAT Trading background Bob Antsy is the sole director of a building company Antsy...
VAT Free Wine

VAT Free Wine

In life the well-known adage ‘there’s no such thing as a free lunch’, is universally accepted as a self-evident truth; but is there such a thing as a free drink? If I make a client who has called it to see me a cup of coffee and give it to them, it’s clearly a free...
VAT Questions on Input Tax answered: Part 3

VAT Questions on Input Tax answered: Part 3

This week in my final Blog on input tax, I will look at how partly exempt businesses and not-for-profit entities must look at the ‘use’ of an expense and whether there is a ‘direct and immediate’ link to taxable supplies. Input Tax Introduction Input tax can only be...