Value Added Tax (VAT)

Value-added tax (VAT) is a relatively new tax. In the UK, it was introduced on 1 April 1973. However, it accounts for about 17% of the UK government’s total revenue.

As the name suggests, VAT is a tax on value-added. A businessman collects VAT on sales while paying VAT on their purchases. The net VAT collected from customers less VAT paid to suppliers is payable to HMRC by the businesses. Generally, residential landlords do not need to worry about VAT. However, as we will discover later, landlords and property developers may be able to claim the VAT they paid for the building works carried out by them.

If you are a VAT registered business, you must prepare, and complete VAT returns quarterly or monthly. In addition, if your annual turnover is above £85,000, you will also need to comply with Making Tax ...

If your property business falls under the scope of VAT and would like to register for VAT, the property VAT experts at UK Property Accountants can help to advise you and register your business for ...

As we explained in our detailed property VAT guide (link), commercial property is exempt from VAT with exception of new commercial building (less than three years old). The property business can choose to convert the ...

To tackle the prevalent VAT fraud in the construction sector, the government introduced Domestic Reverse Charge (DRC) rules with effect from 1 March 2021. Under the domestic reverse charge (DRC) rules, as name suggests, the ...