The reality of Brexit
Even with COVID19 overshadowing everything during 2020, Brexit did not exactly creep up on exporters on 1 January 2021. However, with the EU-UK Trade and Cooperation Agreement only being finalised on Christmas Eve, UK businesses had very little time to prepare for the reality of Brexit. It is little wonder, therefore, that we have had all of the headlines in the first few months of 2021 around delays at the ports, rotting food on lorries and empty shelves in stores. Even the UK’s beloved “Percy Pig” was threatened by EU “red tape”!
Further Extension to VAT Rate Cut for Tourism & Hospitality Industries
Following Rishi Sunak’s budget announcement earlier today the temporary reduced rate of 5% VAT for the Tourism and Hospitality Sectors has been extended for a further 6 months until 30th September 2021. Furthermore, an interim rate of 12.5% will be introduced for the sector from 1st October 2021 until 31st March 2022. Thereafter the standard rate of VAT will apply again.
Did you defer your VAT due to COVID?
*Updated 23 February 2021*
The VAT Deferred payment scheme is now open and can be applied for using the following link: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
If you have any queries regarding the scheme, please contact your usual AAB contact.
Construction Reverse Charge upcoming changes – Q&A
Important VAT changes are coming to the construction and property sector from 1 March 2021. The Construction Reverse Charge is being introduced, changing who is responsible for accounting for VAT in relation to certain supplies.
But what does this mean? AAB’s Alistair Duncan, Indirect Tax specialist at AAB, hosted a Q&A on LinkedIn answering the most important questions surrounding the change. We’ve summarised the questions and answers below.
2020 Year in Review – Construction & Property Sector
2020 will undoubtedly be remembered as the year of ‘unprecedented’ challenges and change, for individuals and businesses across all sectors, particularly in Q1 and the start of Q2.
Don’t be blind to the Brexit challenges
Even with perfect vision, no-one could have foreseen how difficult a year 2020 would have been for UK businesses. However, as we head towards 2021, and the end of the Brexit transitional period, the fresh challenges involved in the import or export of goods and services from the UK are clearer to see.
Postponed import VAT accounting – A Brexit plus point
*Updated 4 March 2021*
Don’t get caught in the post-Brexit customs net
Scotland’s Food and Drink sector is vitally important to the Scottish Economy. Consistently Food and Drink is Scotland’s top export sector, latest HM Revenue and Customs statistics shows that, for 2018, food and drink exports totalled £6.3bn. Of this, £2.3bn were to the EU.
Charity VAT Opportunity – HMRC clarify treatment of digital advertising
The zero–rate relief for charity advertising has provided significant benefits for charities since its introduction for newspaper advertising in 1986. Over the years, there have been a number of changes to the relief which have generally extended the scope to cover broadcast media and all advertising, whether it be fundraising or recruitment adverts.
Life After Brexit – An amicable split or a bitter divorce?
Midnight on 30 June 2020 has come and gone, and with it, the ability for the Brexit Transitional period to be extended beyond 31 December 2020. We are now in the final 6 months of the UK’s marriage with Europe, falling just short of celebrating the golden anniversary.