Sunday Times article about listed buildings

I've thus far resisted the temptation to turn this blog into a Mr Angry column, but I've got to record an element of displeasure about an article about listed buildings that appeared in the Sunday Times a couple of weeks ago.  It contained an incorrect statement about VAT, attributed to me.

A few days before it appeared, I had a call from one Rosie Millard who is apparently a journalist and media person.  She wanted to know about VAT and listed buildings, and I duly obliged with answering her questions.  The scenario she asked me about was refurbishing a derelict building that had been empty for a number of years.  I told her that this would be zero rated for 'alterations' and 5% VAT for repairs.  She was in a bit of a rush and I wasn't confident that she had understood what I was saying, so I asked her to let me see what she was going to write.  She refused.

Yes, you guessed, she got it wrong and blithely told the world that repairs to listed buildings are liable at 5% VAT.  And since then I have had a large number of calls from listed building owners asking me if I really meant what I allegedly said.  Needless to say, I have pointed out who the real culprit was.

I did email Ms Millard to point out her error, but she has not replied.

Rant over.  [Until the next time someone annoys me...]

VAT return payments post 1 April 2010

For most businesses, VAT returns have to be completed and submitted together with electronic payment after 1 April 2010. Existing VAT registered businesses with turnover less than £100k can continue to submit paper returns, and can still pay by cheque. However, HMRC are going to make this a touch more difficult, as they now insist that payment must be received and cleared to their bank by the due date for the return. This can take up to a week, or longer, depending on the quality of the postal service.

Penalties WILL be imposed for payments that are cleared late. No longer can you simply post the return the day before and get a Certificate of Posting. Returns will have to be sent at least a week before the due date and although it might not help, I recommend that you still get a Certificate of Posting. [Or even send it recorded delivery, so that you can tell what date it was received by them.]

I find this new measure somewhat petty, if not draconian. Clearly, they want everyone to pay electronically but if you are at the mercy of the Post Office there is going to be little comeback if the letter takes three or four days to reach HMRC. Even then, it could take a couple of days to be processed before hitting the banking system.

Listed Property Show - 20th and 21st February 2010

Once again I am headed off to Olympia in London for the Listed Property Show, for two days of providing one-to-one advice to those who perchance own a listed building. In addition, I will be giving a couple of talks about the riveting subject of VAT, which will doubtless provoke interest, boredom, or even sleep in equal measure amongst the audience. If you wish to enjoy the other delights on show please do not be put off by the VAT angle. It is an interesting show, including talks, demonstrations and displays by craftsmen and others with a particular interest in listed buildings - and it's free!

www.davebrownvat.com

VAT changes - Pre-Budget Report

Once again, changes announced by HMRC left me totally unmoved, as they announced the proposed changes some months ago. In short:

A revised electronic means of reclaiming VAT incurred in other EU countries.

Changes to the "time of supply" rules for intra-EU supplies.

Changes to the "place of supply" rules for intra-EU supplies of services.

Introduction of EC Sales Lists for intra-EU supplies of services - hitherto only required for supplies of goods.

If you consider that you might be affected by any of these changes, please ask.

Intrastat Changes

There is a reasonably good chance that you will not have heard the expression "Intrastat", let alone know what to do with it! In short, the EU demand that each Member State collects statistical information on trade going between Member States. For certain levels of trade, this is collected using the "intrastat" procedure. Hitherto, the level for both sales ('dispatches') and purchases ('arrivals') was £270,000 annually. The levels are now changing, from 1 January 2010 to £600,000 for arrivals and £250,000 for dispatches. If your sales or purchases exceed those levels, you are then roped into the system with no chance of escape - well, not for a while anyway. Please contact me if you need a more detailed explanation.

www.davebrownvat.co.uk

New Year 2009/10 - VAT rate change

As you may be aware, the VAT rate is going back up, from 15% to 17.5% with effect from 1 January 2010 - that is, from 00.01 on New Year's morning. So do pubs and clubs and hotels have to 'cash up' when they hear the bells? Should they take a "Z" reading in the midst of Auld Land Syne?

Thankfully not.

The Financial Secretary to the Treasury stated that HMRC will allow "a few hours grace" to businesses such as pubs and clubs, to allow them to charge 15% "for a session that goes beyond midnight into the early hours of 1 January."

Needless to say, I was unable to find anything about this on HMRC website, nor was I inclined to phone the National VAT Advice Helpline for confirmation. I'll settle for the wording within Hansard instead.

www.davebrownvat.com

National Home Improvement Show - Earls Court

I have been asked to participate in the National Home Improvement Show at Earls Court in London, which takes place between the 2nd and 4th of October 2009. I will be part of the Listed Property Owners Club stand, in the Period Living Pavilion, and also presenting a short talk about VAT relief for heritage properties on the 2nd.

I will also be available to answer technical questions for part of the Friday and Saturday and look forward to seeing you there.



www.davebrownvat.com