HMRC has now completed its review of the VAT position of early termination charges and compensation payments, and published revised guidance on the gov.uk website. This is long awaited guidance and is an important release from HMRC given the wide range of businesses which will be affected.
HMRC’s new policy will come into effect on 1 April 2022, so organisations that pay or receive such sums should review their VAT treatment as soon as possible.
Source RSM
Latest Posts in "United Kingdom"
- UK Budget 2025: VAT E-Invoicing, Digital Compliance, and Post-Brexit Tax Reforms Announced
- FTT Rules HMRC Closure Notice Bars VAT Registration: Hairdresser’s Turnover Below Threshold, Appeal Allowed
- UK Tribunal Rules Self-Employed Hairdresser Not Liable for VAT Registration Under Rent-a-Chair Model
- EU Insists on VAT Representative for UK Firms Despite British Objections to Import Rules
- Mandatory B2B e-invoicing as of April 2029
