VAT

A value added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the “value added” to a product, material or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs.

HMRC Launch New ‘Alternative Dispute Resolution’ Scheme for Resolving Tax Disputes

HMRC have launched a new scheme encouraging small businesses and individuals to resolve their tax¬†disputes with HMRC by a process they term ‘Alternative Dispute Resolution’ (ADR).¬†The¬†purported¬†ADR scheme is¬†intended to reduce the number of tax tribunal hearings against HMRC. In this article we both outline and evaluate the scheme. Resolving HMRC Tax Disputes: ADR for Small …

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Parking Penalty Fines: VAT Taxable Supply or Contractual Damages?

In the recent case of Vehicle Control Services Limited v HM Revenue & Customs [2013]¬†the Court of Appeal considered whether Vehicle Control Services Limited were liable to pay VAT on parking¬†penalty¬†charges. The Court of¬†Appeal overruled the decision of the Upper Tier Tax Tribunal and found that parking penalty fees are not a taxable supply (therefore …

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Retailer jailed for evading import duty and VAT

The owner of Quality Foods, Mr¬†Puis Sedani (‚ÄúMr Sendani‚ÄĚ), 51, has admitted to evading ¬£580,000 worth of import duty and VAT on tobacco products. Despite two previous warnings from HM Revenue & Customs (‚ÄúHMRC‚ÄĚ) for selling illegal tobacco and alcohol in January 2011 and December 2011, HMRC officers still later uncovered in November 2012, 447 …

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