Published: 08/10/2018 By Robert CoyleVAT errors can be very expensive…….
VAT can also be hugely complex – for instance:
- Selling hot take away food is VATable, cold is not – in a recent tribunal a taxpayer was assessed to over £100k of tax – they sold wraps at markets – the contents had been cooked & then kept warmer than the ambient air – HMRC said this was taxable & won.
- Nuts in shells are tax free – shell them & it is taxable.
- Are you a tutor? Tuition is zero rated if you are a sole trader but potentially taxable if you incorporate.
- Physical books are zero rated, e-books are taxable.
Get it wrong & penalties can be 30% of the tax due. (Plus huge costs & effort in putting it right).
We can help with your tax planning, get in touch today for more info.