When someone buys a business, they have the option of retaining the VAT number. But what are the pros and cons of doing so? Kenny Logan from our Edinburgh Office looks at the implications. If someone buys the trade and assets of a VAT-registered business, it can be treated as ‘transfer of a going concern’...

John sold a machine which he had used in his business before he was VAT registered. He was told that he should have charged VAT on the sale and that he must now account for it out of the proceeds. Is this true? Partner Kevin Ferguson discusses in this article. When a VAT registered business...

You’ve purchased an expensive personalised number plate which included VAT.  A business associate has told you that because the registration number has a connection with the business, you can reclaim the VAT.  Are they correct?  Bruce Currie takes a closer look below. VAT claim allowed Unlike VAT paid on the purchase of cars, there’s no...

You are considering leasing instead of purchasing cars for your business. This will improve cash flow and, according to the salesperson, allow you to reclaim VAT that you would not otherwise be entitled to. Is this correct?  Naomi Swan explains the rules. Generally, VAT paid on the purchase of cars for use in your business...

Your business sells vouchers to customers that can be redeemed against goods or services that you sell in the future. But how should you account for VAT on these vouchers?  Naomi Swan provides the answer. What is a voucher? Many vouchers issued by your business will be electronic rather than in paper format. This is...

Your charity has received a grant to help it to fund specific projects and you are worried that the strict conditions imposed will make it subject to VAT. Is this the case and what checks can you make to ensure there are no problems?  Gail Trojan provides the answers. Status of grant provider The first...

A trustee of an environmental charity has launched a fundraising appeal to ask for donations from supporters. One tree will be planted in a city centre for each £20 donation. Are the donations subject to VAT as a supply of services?  Naomi Swan explains in this article. What is a donation? VAT is not payable...

The rules of VAT are fairly simple. You can reclaim VAT you pay on goods or services you buy for your business and charge your customer VAT when you sell them. But how should you handle VAT where you buy or sell second-hand goods? VAT expert John Craig explains. You may have heard of VAT...

It’s common for directors and employees to buy things for the company in their own name or to use their personal Amazon account for convenience. The problem is that the invoice is then addressed to them and not the company. Can you claim the VAT back?  VAT Expert John Craig provides the answer. The key...

If a business can’t pay the VAT it owes on time, a new time-to-pay option could provide some breathing space. Who can take advantage and how can it be applied for?  Naomi Swan explains. If a business cannot pay its VAT on time and owes less than £20,000, it is now possible to set up...