complete financial know how

Tag Archive: VAT

  1. Do I have to charge VAT on food that is delivered cold to my customers?

    Leave a Comment

    My Mate Says… ‘I don’t have to charge VAT on food that is delivered cold to my customers’.

    Under VAT notice 709/1, cold takeaway food and drink is zero-rated for VAT, if it’s not of a type of food that is always standard rated such as crisps, sweets and beverages.

    If food comes out of the oven and it is above the ambient room temperature, it must not pass any of the 5 tests below to secure the zero-rated VAT treatment:


    1. Been heated for the purposes of enabling it to be consumed hot

    Products that have been cooked specifically to enable consumption whilst still hot (as a result of being freshly prepared, baked, cooked, reheated or kept warm) would pass this test so would be standard rated (20%) for VAT. Unless the food is not intended to be eaten hot but as a result of it being freshly baked for example, it hasn’t yet cooled down.

    Examples include; Pizzas, Kebabs, Chinese/Indian takeaways and hot soup.

    If a takeaway pizza is being delivered cold as the driver got stuck in traffic, this wouldn’t make it a zero-rated supply as the food was meant to be consumed hot, but circumstances meant that it wasn’t.

    1. Been heated to order

    Sale of food that has been heated to the customer’s order is standard rated. For example, if you toasted a panini for a customer, this would make it a standard rated supply.


    1. Been kept hot after being heated

    Food that is kept hot after being cooked, heated or reheated is a standard rated supply. For example, if a chip shop fried some battered cod and kept it warm in the heated cabinet, this would be a standard rated supply.


    1. Provided to a customer in packaging that retain heat (even if the packaging was not designed for that purpose)

    If the food being provided to a customer is in packaging that retains heat this would make it a standard rated supply. The packaging doesn’t have to be primarily designed for that purposes but serves this purpose would be caught by this rule. For example, if an Indian takeaway delivered Naan breads in a foil lined bag, this would be standard rated due to the packaging used.


    1. Advertised or marketed in a way that indicates that it is supplied hot

    If you market/advertise your takeaway food as being supplied hot, this will make it standard rated VAT. For example, if a pizza delivery company advertising that the pizza will arrive piping hot ready for you to enjoy, this will make it standard rated.

    HMRC have also specified that if the pictures of the products show steam rising from them, they would deem this as advertising them as being supplied hot.


    VAT is a complex area which is regularly argued within the courts of the interpretation and classification of a service. If you are unsure about the VAT treatment of your services, please do not hesitate to contact us on 01908 219 100 or by email at

  2. VAT Surgery Day

    Leave a Comment

    Do you have unanswered questions about any aspect of VAT?

    Is VAT giving you a headache?

    Are you sure you’re getting your VAT right?

    Our office will be open for you to meet with our VAT expert, Melanie Lord, of AVS VAT. For more information about Melanie Lord of AVS VAT, please click here.

    Melanie is available for individual drop-in sessions from 10:00am-5:30am.


  3. Using Xero & affected by MTD?

    Leave a Comment

    Making Tax Digital came into effect from 1st April 2019.

    Under the new regulations, all UK businesses that are VAT registered and above the £85,000 threshold are now required to keep their records digitally and submit VAT returns to HMRC using MTD-compatible software.

    You are now unable to submit VAT returns using the HMRC website.

    As Xero is MTD compliant, you will simply need to register to join MTD with HMRC before you submit your first VAT return within Xero. Your first MTD VAT return will be the first quarter which has a start date on or after 01 April 2019.

    To register for MTD with HMRC, click here. In order to do this you will need your user ID and password for HMRC VAT online and your VAT registration number.

    Once you have done this, you will receive a confirmation email within 3 days of doing so from HMRC. Please note that you cannot submit your VAT return until you have received that confirmation email.

    After you have received the confirmation, you will only be able to submit your VAT returns to HMRC via Xero.

    If you have any queries or wish to discuss the above in any further detail, please contact us using the details provided below.

    01908 219100

  4. Xero Day – October 2018 AM

    Leave a Comment

    Require any help with using Xero, or just simply want to know more about the product?

    Pop by to our office and our cloud support specialists are highly trained and experienced in providing you will all the help, support and advice you will need.

    This is an exceptionally good way to learn more about the functionality of Xero, as well as the various features and tools it contains. You’ll be able to see live demonstrations of the software and are freely able to ask any question you desire.

    Therefore, if you are thinking or planning on coming along to our drop-in-day, please make sure you contact George on the details below to book a time.

    George Bruce – Cloud Business Manager

    01908 219100

  5. What does the autumn 2015 statement mean?

    Leave a Comment

    Our autumn 2015 statement summary is designed to help you interpret what the autumn 2015 statement means to you. Autumn statement 2015

    George Osborne failed to produce a big surprise ‘rabbit’ out of his collection of tax measures and spending announcements set out in the Autumn Statement, but a few hares were set running amongst property investors. They will face increased Stamp Duty Tax charges from 1 April 2016, and accelerated payments of Capital Gains Tax from 2019. There will be some relief that the changes to travel and subsistence rules for contractors working through personal service companies will not be implemented as widely suggested in earlier consultation.

    Lower paid workers will be grateful that the rates and thresholds for Working and Child Tax Credits are to be frozen at the 2015/16 levels for 2016/17, rather than being cut drastically as announced in the Summer Budget. Tax Credit claimants are gradually being moved on to the new Universal Credit so their relief may be short-lived.

    The Government will collect extra tax revenues from increasing certain duties, and advancing the dates on which tax is payable, as we detail in our summary below.

    Click the link below to view the Ad Valorem autumn 2015 statement summary.

    Ad Valorem summary – Autumn 2015 Statement

  6. Meet the Ad Valorem Team

    Leave a Comment

    Ad Valorem is a leading firm of Chartered Certified Accountants in Milton Keynes and Luton who, alongside a team of business advisors, serve the Buckinghamshire, Northamptonshire and South East region.

    We pride ourselves on helping small to medium sized businesses, including start-ups, to succeed with our practical advice on all accounting and financial matters.

    So whether you are an entrepreneur in need of help to grow your business, a new business wanting advice, think you are paying too much tax or simply confused by self-assessment, we are perfectly placed to assist. We can even provide HR, business mentoring, business growth and sales and marketing know-how.

    Our range of accountancy bundles have been developed to cater for the different needs of businesses and the level of accounting services you require.

    If you are looking for an approachable accountant, come and have a down-to-earth chat with no jargon, just good solid business advice.

    As one of the region’s leading firms of chartered accountants, at Ad Valorem we have the resources and expertise to handle all your accounting and business needs. If you are interested in finding out more about Ad Valorem, please contact us using the details below.

    Ad Valorem Accountancy Services

    01908 219100

  7. Barrister wins VAT efiling appeal

    Leave a Comment

    A £100 penalty issued by the HMRC for failing to submit an online VAT return has been overturned by a self-employed barrister, on the grounds that an earlier requiremT&Csent to read HMRC terms and conditions relevant to online filing procedures was unlawful.

    The barrister had no protestation to submitting the online VAT return, but did object to needing to tick a box when signing up on the government gateway, confirming that he had read the terms and conditions for filing online.

    After submitting paper VAT returns in 2012 and 2013, the barrister was given a £100 penalty from HMRC for failing to submit an online return for the March 2013 quarter.

    The barrister, Neil Garrod, objected to the quantity of the terms and conditions. The judge acknowledged that the terms were 12 A4 pages long and were set in fairly close print and also raised concerns imposed on taxpayers such as, having to regularly check their mailbox, hosted on the HMRC website which the department uses to communicate with taxpayers.

    However, the HMRC argued that taxpayers only need to confirm that they have read the terms and conditions, they do not need to agree to them. They also stated that they were only confirming details within primary and secondary legislation.

    The First-tier Tribunal chairman of the case disagreed with the HMRC stating that the terms and conditions were beyond the recital of law and concluded that the HMRC had no power to impose it. Therefore, she considered imposing the tick box pre-condition was unlawful and as this was the cause of Mr. Garrod’s failure to file online, the penalty was also not lawfully imposed.  This resulted in the First-tier Tribunal chairman concluding that Mr. Garrod had a reasonable excuse for not submitting his VAT return online and that the penalty is invalid.


    For further information go to Accounting Web.


    Ad Valorem Accountancy Services

    01908 219100

  8. VAT considerations for Dentists – Cosmetic Treatment

    Leave a Comment

    The business aspects of dental practice have greatly evolved in recent years. Changes include:

    • Dentists’ contracts
    • Growing business requirements
    • Patients’ expectations exerting an increasing influence on all aspects of the dental industry.

    Cosmetic Dentistry:

    As cosmetic dental work is on the rise in Britain; it is no surprise that many private practices are taking advantage of the growing market, developing their business. However, in the cosmetic market there are some VAT considerations that you, as a dental practice, need to be aware of.

    Where cosmetic services are performed as part of a supply of dental treatment (BDA has advised that it is rare for dental work to be carried out purely for cosmetic reasons), then there is a single supply of exempt healthcare. Contrastingly, where cosmetic dentistry is performed outside of any healthcare, it is standard rated.

    Interpretation plays a large part in whether a procedure is viewed as purely cosmetic or health related. What is clear is that the UK law provides for the supply of the following, by registered dentists and auxiliaries, to be exempt:

    • Health services where the principle purpose is to protect, maintain or restore the health of the person concerned and;
    • Dental prosthetics

    All dental work is deemed to be medical care, but will not be exempt unless it can be demonstrated that the intension is to maintain or restore heath. This means that the health professional needs to determine with an accountant’s or tax advisor’s support whether they consider that the requirements for exemption have been met.

    If you would like a trusted accountant with a specialism of dentistry to support your practice, please contact:

    Ad Valorem, your preferred leading firm of Chartered Certified Accountants in Milton Keynes, Harpenden, Northampton and Luton who, alongside a team of business advisors, serve the rest of the Buckinghamshire, Northamptonshire and South East region.

    Ad Valorem Accountancy Services

    01908 219100

    Links:AV logo_sml


    Ad Valorem Accountancy Services


  9. Place of supply VAT rule changes

    Leave a Comment

    From 1st January 2015, if you are involved in the supply of digital services (electronically supplied services) you should be prepared for a major change to the VAT place of supply rules.

    If your customers are private individuals in other EU member states, you will be required to account for VAT on these supplies in the Member state where the customer is established.

    To determine whether your business will be affected by these changes it will be important to undertake a review of the services being provided and examine the following issues:

    • Pricing structure – to take into account different VAT rates in Member states
    • Establish where your customers are actually located
    • Establish your customers’ tax status – e.g. are they private individuals
    • Develop your internal accounting systems to cope with multiple VAT rates
    • Storage and retention of customer data
    • IT systems
    • Budgets

    Ad Valorem Tax Consultants can assist in this process by producing a plan to ensure your business is VAT compliant, conduct a review of your EU trade to establish where registration may be required and review your accounting systems to ensure that non UK VAT can be accounted for correctly through the EU ‘One Stop Shop’ (local country web portal registration).

    There is however a significant positive element to these changes if you supply private individuals outside of the EU.

    Under these new rules, EU suppliers are no longer obliged to levy VAT when selling on markets outside the EU, thereby removing a significant competitive handicap. Under tax rules previously drawn, EU suppliers had to charge VAT when supplying digital products even in countries outside the EU.

    The changes eliminate an existing competitive distortion by obliging non-EU suppliers to charge VAT as if EU suppliers when they are providing electronic services to EU non-taxable persons, something which EU businesses had been actively seeking for some time.

    If you require advice or assistance on any VAT matter please contact Richard Feakins on 01908 219100.