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Distance selling - Should you be VAT registered in another EU country?

Cross border transactions is one of the most complex areas of VAT.  If they are part of your business activities it is vital to ensure that you understand the relevant rules.

This article will centre on the distance selling rules which are key when goods are sold to non business customers in other EU countries.

When goods are sold to business customers who are VAT registered in other EU countries, these goods are zero rated for UK VAT as long as the goods leave the UK, with the customer accounting for any VAT due as an acquisition in the customer’s country.

MSI awareness month

September 2014 saw the inaugural MSI month, a series of events and seminars designed to raise awareness of the MSI alliance - a global network of advisory firms of which Armstrong Watson is a member.

MSI is an international association of over 250 legal and accounting firms based in more than 100 countries. MSI member firms specialise in providing advisory and compliance solutions to individuals and small and medium sized businesses, wherever in the world they are based.

How MSI Global Alliance can help - Case studies

You don’t need to be a multinational company to find yourself affected by and needing advice on non UK laws and taxes.  Something crops up for me virtually every week with some kind of international angle.  From a holiday home just across the channel in France, to expats in Japan, mariners at sea, or a farmer’s son doing a stint in New Zealand we have a well travelled client base. 

Freedom and choice in pensions – No more death tax

The Chancellor announced on 29 September 2014 that from April 2015 onwards, individuals will have further freedom with their pension pots after their death.

For those under the age of 75 with a drawdown arrangement (where the fund remains invested and an income is taken from it) will be able to pass on this pot of money tax free when they die. This is a significant change from current rules, which state that a 55% tax charge will become due to the person inheriting the pot of money after death of the policy holder.

Scotland votes to remain within the UK - What happens now?

Well in the end it was a comfortable majority of 55% to 45% for the No voters, with the turnout at a record level of 84%. Some people might think that is the end of the matter, however those businesses trading close to the Scotland / England border may have to put plans in place soon, given the significantly increased devolved powers already enacted and the further powers promised by the politicians.

Does the 'No' vote mean business as usual?

The No vote does not mean that it will be business as usual for the UK, one thing is for certain, we will have change in Scotland which will have an impact on both sides of the border and will impact on businesses that operate in the North of England and the South of Scotland.

Five great apps to grow your business

Mobile technology is enabling us to make the most of spare time, whether it be waiting for a meeting or traveling on a train. I thought it would be good to share some apps that I believe could help you grow your business and all are either free or cost less than £2.

Brainstormr Mobile (£1.99)

Ten tax aspects of furnished holiday let properties

Furnished holiday let (FHL) property income is treated differently from longer term residential lettings.  We set out the top 10 tax areas any FHL owner needs to know.

1.    Counting the days – There are minimum letting requirements to meet the FHL criteria.  Firstly, a property has to be available to the public for at least 210 days and it actually needs to be let as commercial holiday accommodation for 105 days.  Days are usually counted over a tax year apart from in the first and last year of trade.

Advisory fuel rates for company cars

Many employers and employees make use of the advisory fuel rates published by HM Revenue & Customs. The rates apply where the employer:

• reimburses employees for business travel in company cars where the employer does not provide fuel, or,
• requires employees to reimburse the cost of employer provided fuel used for private travel, so potentially avoiding a private fuel benefit charge.

The advisory fuel rates are also acceptable for VAT purposes providing VAT receipts for fuel purchases are retained.

Did the business cope without you?

In July, I wrote about the impending holiday season in my article “Can the business cope without you?”

The general theme was whether you have the ability to “switch off” from the business during your summer break. Well, how did that work out for you?