Rates attracting VAT from Jan 2012

[Teakbank12]

BL/Haven have posted this info online with letters to owners to follow...
At least we are being given the chance to avoid the increase!!


You will soon be receiving a letter from us keeping you informed of HMRC changes to the way in which they intend to treat the recharge of VAT on certain rates including non-domestic (business) rates and water and sewerage rates.

The introduction of such VAT charges is out with our control and we will need to apply standard rate VAT to your rates charges from 1st January onwards.

To help you beat the taxman we’ve taken the decision to bill our 2012 Rates Charges at the same time as your Utility Bill, which you will receive in November 2011. Although this billing is much earlier than usual it will give you the opportunity to settle your account and avoid paying the additional VAT charge. Please note that the exclusion of VAT will only apply if you pay your rates in full before 31st December 2011

[MuppetChops]

Yes - our company have decided to charge rates separately for the first time this year. They have basically done the same as Haven and will be invoicing us in December to avoid the VAT increase next year.

Still means that next year we will have to find another 60 quid - that will be on top of any site fee increases!:rolleyes:

[treetopper]

Bet HMRC got egg on face if everyone pays their rates early,although they may say that it is Tax avoidance,as it is levied on rates from april 2012.

[treetopper]

just have a look at this ...do you think that this government will go after BL/Haven??

HMRC will allow the following treatment to apply. However, HMRC reserves the right to withdraw or restrict the application of this table where an attempt is made to use it for tax avoidance (for example, if a business raises an advance invoice in 2011 when it is not their normal practice to do so, HMRC may challenge this. HMRC will not challenge invoicing arrangements that are in accordance with a business's normal practice).

[dasboot]

Our company did this for us last year to avoid the overall vat hike and it worked but they haven't done it this year to avoid the vat on rates.

[MuppetChops]

just have a look at this ...do you think that this government will go after BL/Haven??

HMRC will allow the following treatment to apply. However, HMRC reserves the right to withdraw or restrict the application of this table where an attempt is made to use it for tax avoidance (for example, if a business raises an advance invoice in 2011 when it is not their normal practice to do so, HMRC may challenge this. HMRC will not challenge invoicing arrangements that are in accordance with a business's normal practice).

Don't know treetopper but our company should be ok as it is the first year they have invoiced rates separately and they have decided to do it in December each year so HMRC can't say that they have changed their invoice date to avoid tax.

[TreeTops]

Here's the HMRC view

http://www.hmrc.gov.uk/briefs/vat/brief3711.htm

It might not make too much of a difference. For example out "Rates" bill included refuse and water (as it's not metered). These elemenents already attract VAT so in the case of Tree Tops (http://www.treetopscaravanpark.co.uk) we are not expecting a huge increase as long as rates are not increased too much..

[treetopper]

It might not make too much of a difference. For example out "Rates" bill included refuse and water (as it's not metered). These elemenents already attract VAT so in the case of Tree Tops (http://www.treetopscaravanpark.co.uk) we are not expecting a huge increase as long as rates are not increased too much..

Thats good news .Didn't the Govt. freeze rates??;):D