April 2022 VATwatch

Volunteer Opportunity

Darlington South Park Foundation is looking for a new volunteer treasurer. 

This is an exciting time for the Foundation as we have just received some lottery funding and we are trying to strengthen our team to take the project forward. Our aim is to increase engagement with hard to reach groups and to ensure the park is around for hundreds of years to come.

We are looking for a treasurer who will be able to maintain our accounting records and prepare our annual accounts. We meet every 2 months for around 1-2 hours but there is also an opportunity to get involved further to help on the subcommittee working on the lottery project if this is of interest.

If you’d be interested in the role, or just want to know more about what we are doing, please let me know. 

Update re Group VAT Registration Delays

Back in February, I provided you with a link to advice HMRC had released for those businesses waiting for a group registration/deregistration/amendment to be processed.  At that time, the advice was to file the returns as if the application had not been submitted.

Upon reflection, HMRC has decided that this is not the correct treatment after all and has published a brief confirming that you should actually file the returns as if the application had been accepted on the date you submitted it.

Claims for Wrongly Paid VAT

Following an EU case in 2017, where a customer believed they had been wrongly charged VAT by a supplier, and it would be “impossible or excessively difficult” to recover it from the supplier, they could make a claim to HMRC. This would be the case where, for example, the supplier had become insolvent and been liquidated.

HMRC has now published a brief advising that, as a result of Brexit, claims such as these are no longer possible and instead this is a commercial matter between the two parties.

Lennartz Mechanism entered into before 22 January 2010

Any business using the Lennartz mechanism which entered into the arrangement before 22 January 2010 should read this brief clarifying HMRC’s understanding of the position.

Dates to Sign Up for MTD

Making Tax Digital (MTD) is compulsory for all VAT registered businesses for periods beginning on of after 1 April 2022.

It is important to sign up at the right time in order to avoid problems with Direct Debits.

HMRC says:

“If you already pay by Direct Debit do not sign up too close to the date your return is due, or you may pay twice.

To avoid this, do not sign up less than:

·      7 days before your return is due

·      5 days after your return is due

If you do not pay by Direct Debit, sign up at least 3 days before your return is due.”

Thank you for taking the time to read this VATwatch round-up.