Content
Oh for a little hindsight
Can't pay, won't pay?
Shock in Essex
Car tax
You signed it
Don't be late
Age before beauty?
IHT and falling prices
More paper
Shopping around
Less paper
PAYE or not PAYE...
Flat rate scheme
A change of heart
There are limits
Do your duty
Free lunch
VAT a mess
Dissatisfaction guaranteed
Don't believe it!
Too late
Tax on tick
£100 note
Temp reminder
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If you are building houses to sell them, you can recover all your VAT as you go along. If you do the same thing with the intention of renting the property out, you can't reclaim VAT. What if you change your mind from one to the other? HMRC have recently published guidance on this scenario, explaining that they suspect it might become more common in the economic climate - houses that were started when times were better may not be saleable once they are completed. As long as you still intend to sell the house in due course, you don't lose all the VAT. However, there may be some clawback of the VAT you claimed in the past, because you are now making a supply that is partly exempt - renting for now, selling in the future. HMRC's guidance explains how the clawback is calculated. If this could affect you, we'll be happy to advise you on whether you have anything to worry about - it may be possible to avoid any clawback if you take action before the renting starts.  |