UK losing billions in VAT from online sales

It has been claimed that up to £2bn of VAT is being lost on sales though online marketplaces like Ebay and Amazon each year. HMRC have been targeting online sellers for a couple of years as they believe a lot of small UK businesses are trading online without being properly registered and without paying the …

EU VAT Rule Change Creates a VAT Mess For Micro-Businesses

The internet has made it incredibly easy for lots of entrepreneurs and startups to find customers and build a business. Now lots of micro-businesses and solo entrepreneurs who sell online are worried that a new EU VAT rule will mean the end of their business. In the UK, businesses aren’t currently required to register for …

HMRC Changes to the VAT Registration Process

HM Revenue and Customs have recently made some changes to the way VAT applications are made. In the past there was a single online form which anyone could use to submit a VAT application. The new system adds an extra step which slows the process down considerably. Applying for VAT Yourself The first step in …

Selling on eBay? You may need an accountant.

Her Majesty’s Revenue and Customs (HMRC) have recently launched a new e-marketplaces campaign targeting people trading on sites such as eBay and Facebook Marketplace. While many online marketplaces including eBay and Amazon will sort out most of the VAT due on sales, HMRC are concerned that some VAT, National Insurance and other taxes may be …

The Advantages Of Voluntary VAT Registration For Small Business

Value Added Tax (VAT) is the sales tax levied against goods and services within the UK. Businesses with a turnover in excess of the VAT Registration Threshold (currently £70,000 P.A. 2010-2011) are required by law to complete a VAT Registration with HM Revenue & Customs. Businesses that fail to do so within 30 days of …

VAT Rise Causing Hike in Inflation?

According to the BBC (Inflation expected to exceed 3%), the return to 17.5% VAT has had an effect on inflation. Inflation has apparently risen over recent months and analysts think that it might well increase further to 3.5%. It’s not all bad news though as the experts predict a drop back to more appropriate levels …

VAT Registration Problems and Issues

There are quite often a number of problems that occur both before and after VAT registration which present issues for both the business concerned and the tax man. Firstly, a large number of VAT registration applications are rejected by HM Revenue & Customs due to incorrect or missing information on the relevant forms. If not …

How to get a VAT Number.

If you are selling goods or services in the UK you will be expected to charge your customers Value Added Tax (VAT). This then has to be paid to the government via HM Revenue & Customs. In order to do this you must register with HMRC and be assigned a VAT registration number. At The …