Sub-letting trading premises, should we charge VAT? Q. The landlord of our trading premises charges VAT on our monthly rent, and we claim input tax. We are planning to sub-let one of the floors to another business but are not sure if we should also charge VAT? If we don’t, does this mean we will...

Partner Andrew Wayness provides the answers in this month’s Q&A. Is a charity’s loss-making event exempt from VAT? Q. We are a charity that is registered for VAT. We recently held a fundraising event, treating the income as being exempt from VAT, but the event made a loss. Should we treat the income as standard-rated...

Is there VAT on gift to top salesperson? Q. You operate a car dealership business and have given a case of champagne to your best performing salesperson. Can you claim input tax on the cost of the champagne because each individual bottle cost you less than £50. Is this correct? A. Unfortunately, your interpretation of...

GDPR – What information do you hold on me? Q. If an employee wants to make a subject access request, must it be given in a particular format? A. The UK GDPR does not set out any formal requirements or suggestions for a valid subject access request. This means that a subject access request can...

Can services be zero-rated? Q. We have decided to build a bungalow next to our farmhouse so that my partners elderly mother can live in it and be close to us. We have obtained planning permission for the project and have appointed a builder to start the work. The builder will supply labour and materials....

Can a director take a company vehicle out of the business to sell? Q. A company director bought a car through his business on finance, it has been a company vehicle for a few years. The finance is now paid off, and he would like to sell it, but as the business is VAT registered,...

Is VAT payable on cash stolen by employee? Q. We are retailers and have discovered that a member of staff has been understating our sales by taking, say, £30 cash from a customer, and only recording the sale as £25 in the till. Must we account for VAT on the £5 shortfall? Does it make...

Expenses for travel to temporary workplaces Q. In April 2020 we furloughed an employee who since June 2019 had been temporarily working away from her normal workplace. She is about to return to work at the temporary location and is expected to be there for the next six months at least. We have always paid...

Is there VAT on renting out farmland? Q. I have agreed to rent a field from a farmer who is unsure whether he must charge VAT. As far as I am aware, as long as he has not opted to tax the land he does not charge VAT. Is this correct? A. The answer here...

Q. I’m the only director of my company and I own all its shares. I bought a van in my name but I intend to use it in the company’s trade. Can the company reclaim the VAT included in the purchase price? A. If the van was purchased and used privately or for a different...