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Recent changes to VAT.

HMRC has issued Business Brief 21/13 VAT: withdrawal of the VAT exemption for supplies of research between eligible bodies.

Tonmoy Kumar, Manager of the Accounts Department of ABDS comments:
“This latest HMRC brief relates to the transitional arrangements for supplies of business research where the written contract was entered into before 1 August 2013, whether or not work has already commenced. The exemption will continue to apply to services within the scope of the contract. It also discusses the withdrawal of the exemption for all new contracts.”

HMRC has also issued VAT Information Sheet 11/13 VAT: supplies of research between eligible bodies

Tonmoy Kumar comments:
“This brief provides guidance on when the provision of research between eligible bodies may still be treated as exempt from VAT.”

VAT Notice 700: The VAT guide

Tonmoy Kumar comments:
“This notice replaces the May 2012 version and includes these changes and amendments to a number of sections of the guide:

  • clarification of when you can rely on advice from HMRC
  • an update on the changes to registration of Non-Established Taxable Persons
  • an update, including examples, to take account of changes to VAT invoicing requirements
  • a rewritten section 29 zero-rating, reduced-rating and exemption.”

VAT Notice 700/45: How to correct VAT errors and make adjustments or claims

Tonmoy Kumar comments:
“This notice applies now and replaces the October 2012 version. It highlights and explains the treatment of errors and adjustments, with examples.”

VAT Notice 700/62: Self-billing

Tonmoy Kumar comments:
“This notice applies now and replaces the December 2003 version. In the notice it is highlighted that the changes reflect the changes to the rules for VAT self-billing introduced by Council Directive 2010/45/EU, in particular - the requirement for VAT self billed invoices to include the reference “SELF BILLING”’.”

Tonmoy Kumar comments:
“VAT is a very complex area of taxation, and with legislation changing constantly it is very difficult to keep up. This is why you should always seek specialist advice, so, if you have any VAT or related questions, contact ABDS and see how we can help,”

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail:

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