Year End Tax Review 2010/2011


Lead articles

Looking forward

This year, next year

Rate of change

Pension merry-go-round


Too much NIC

NIC and pensions

Company cars

Tax-free benefits

Childcare vouchers

Business - General

Time to incorporate?

Associated or not?

His and hers

Family bonus

Profit and loss

Show me the money

Can't pay, won't pay?

Turning back the clock

Business - VAT

Standard VAT or flat VAT?

VAT's up again

All Europeans now

A good start for VAT

Happy returns?


Top-up savings

Rainy day money

Capital Gains

Gains favoured

Splitting gains

A place in the country

Holiday lets reprieved


Family fortunes

Where there's a Will

Credits and debits

Benefit going

Piggy banks

Still trustworthy?


Penalty shoot-out

Going online

Paperwork, paperwork

Pay tax later

Opportunity knocks again


Give and save

Non-Domiciled People

Home and away


Interesting times

All Europeans now

At the beginning of 2010, new rules were brought in for UK businesses which sell goods or services to business customers elsewhere in the EU. Most people who were affected should be used to the new rules by now, but it's worth reviewing the situation a year in and checking that you are dealing with everything correctly.

If you sell goods to business customers in the EU, you should be used to filing quarterly sales lists showing your customers' VAT registration numbers. Since 1 January 2010, anyone selling more than £70,000 of such goods a quarter has had to file these returns monthly, and the time limit was shortened to just 14 days after the end of the period for a paper return and 21 days for an online filing. Because EU sales of goods appear in Box 8 of the VAT return, HMRC should know whether you are supposed to file these sales lists and will contact you if you are not doing so.

If you sell services to foreign-registered business customers, you are now supposed to file detailed quarterly reports of the supplies of services that you don't charge in the UK because the customer will deal with it in the other country. There is no exception for small amounts of sales. Sales of international services don't appear separately on the VAT return, so HMRC won't know if you haven't complied with this rule until they visit you and ask awkward questions.

There is also one small change to the rules on "place of supply" on 1 January 2011 someone who sells educational, entertainment or cultural services, or services relating to exhibitions or shows, will in most cases now be able to pass the responsibility for VAT accounting to the customer if they are registered for VAT in another member state. Up to the end of 2010, the supplier was supposed to account for VAT wherever the event took place.

There's some general information on the HMRC website, but it's important to consider exactly what your business needs to do to comply with these rules.

Action Point!
Do you sell any goods or services to customers elsewhere in the EU?