February 2013

The Government has announced its intention to defend the UK’s stance on 5% VAT for energy saving materials for residential buildings, which is the subject of a formal challenge from the EU. However under the VAT guidance of HMRC Brief 26/12 they confirm that similar installations in charitable buildings is to be withdrawn from a date following Royal Assent to the Finance Bill 2013 which is likely to be 1^st August 2013. Any works that have commenced BEFORE the date will still attract 5% and will apply to the whole installation.

Any charity considering installing energy saving materials should act now and for further VAT help please contact Sarah Shears or Steve McIntyre on 01962 735350.

Taxpayers still have until the end of February 2013 to bring their affairs up to date following HMRC’s announcement of their Outstanding Returns campaign earlier this month.  HMRC have asked that all businesses that have outstanding VAT returns take this opportunity to file VAT returns, and pay any outstanding tax.  It should be noted that the campaign is not an amnesty in terms of potential penalties and interest that may apply.

HMRC say in their VAT guidance that if all filings are brought up to date before 28^th February, then taxpayers will be offered “the best possible terms” and that if returns are still outstanding after 28^th February, HMRC will be paying closer attention to the tax affairs of the those with outstanding returns.

The comments made appear to support the view that there is a toughening of HMRC’s position against taxpayers who  are not keeping their VAT compliance up to date.

If you or your clients have any returns that are outstanding and would like to discuss how best to deal with bringing filings up to date please contact us 01962 735 350.