In the first of our VAT updates for this week we discuss the above items in more detail.
VAT Notes 2/2010
HMRC publish VAT Notes quarterly. These contain a summary of all recent changes to the VAT rules and announce future changes.
Vat Notes 2 of 2010 has just been published and highlights of this include:- online filing for VAT, changes to the option to tax on supplies of land and buildings, partial exemption deminimis rules and clarification on EC sales lists for services post 1 January 2010.
Also included is a full list of New and Revised VAT publications and Information Sheets in 2010. Click here for the full text of the publication:-
Revised VAT Notice 700/43: Default Interest
HMRC have also just published Revised VAT Notice 700/43. This notice explains how default interest works and when it is applied.
Default interest was first introduced by section 18 of the Finance Act 1985 and it affects VAT periods starting on or after 1 April 1990. Initially it is charged where appropriate on any amount of VAT which has been underdeclared or overclaimed, from the time the amount should have been paid to the time it is assessed.
Default interest is also intended to provide commercial restitution for the loss of understated or overclaimed VAT and should not be considered a penalty. See the full text of the Notice here