VAT Lawyers & VAT Specialists
VAT ought to be straightforward: a business charges its customers VAT on its sales, gets a credit for the VAT it incurs on its own expenditure, and accounts for the difference to HMRC, usually every quarter. There are however many reasons why businesses can end up losing out.
A common error is charging your customers the wrong rate of VAT or being overcharged VAT by your suppliers. Most businesses know the correct VAT rate for the goods or services they buy and sell, but sometimes a product can have a slightly different characteristic so it may tip into a different rate; and sometimes perhaps due to a diversification of the business, a product may be significantly different and be subject to a VAT treatment which is unfamiliar.
Another trap is to start making sales which are exempt from VAT, which can restrict your ability to reclaim VAT on your expenditure. This is particularly common when a business is selling its premises or letting part of them out. For example, if a retail business bought new premises for, say, £1m plus VAT, it would reclaim the entire £200,000 of VAT at the time it buys the premises, but if it sold the same premises after 5 years without taking any further action, it would face a bill from HMRC for £100,000. This is known as a capital goods scheme clawback, and it’s a situation which can’t be remedied once it happens. A nightmare.
The VAT rules relating to property are particularly tricky, so much so that without specialist VAT advice, a business is unlikely to get everything right.
Our tax team can advise you on all aspects of VAT. We can ensure that you are applying the rules correctly, that you understand the implications of undertaking any proposed transaction, and that you have taken any steps to avoid any unnecessary VAT costs. If you are being pursued by HMRC for VAT then we can help you and perhaps get an assessment overturned if we can identify sufficient technical grounds.
Julian Moran leads the Tax team at Lupton Fawcett. He has been advising on business tax matters since qualifying in 2002. Julian is based in our Leeds and York office. Sarah Illidge is a senior solicitor specialising in tax, and is based in our Sheffield office.
Contact Us for Help
For help, advice and information regarding tax disputes, contact our VAT Lawyers & VAT Specialists today by phone or using the contact details on the form.
Lupton Fawcett are a leading personal and commercial law firm in Yorkshire with well-established offices of highly experienced solicitors in Leeds, Sheffield and York.
We provide a personalised service, with sector specialists and extensive resources to ensure we are giving you the best solutions to your problems.
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Our Corporate Tax & Finance Solicitors act regularly for clients across the United Kingdom including Bradford, Birmingham, Hull, Leeds, Liverpool, London, Manchester, Sheffield, York and Nottingham. We also provide specialist niche legal and commercial services for Irish companies wishing to do business in the UK and legal advice for UK companies trading in the Republic of Ireland. We can support your needs wherever you live in England, Wales, Northern Ireland and Ireland.
We will always respond promptly, and we will be happy to help.