Navigating the intricacies of VAT returns can be a complex task, particularly for professionals such as barristers who are often focused on their legal practice. Understanding the nuances of VAT regulations and their application to the legal profession is crucial to ensure compliance and optimise financial management. Our comprehensive FAQ guide is designed to shed light on some of the most common queries related to VAT returns for barristers, helping to demystify the process and provide clarity on key aspects.
The FAQ guide covers a wide range of topics, from understanding the tax point for professional services to managing VAT on shared expenses in chambers. It delves into the specifics of VAT registration cancellation, deferring payment of VAT on outstanding fees, and the implications of ceasing practice while continuing to make other taxable supplies. The guide also addresses more unique circumstances, such as the VAT implications following the death of a practising barrister and the considerations for those who are partly exempt for VAT purposes.
Each question in the guide is paired with a concise, clear answer, providing a straightforward resource for barristers seeking to understand their VAT obligations. The guide is structured to provide a comprehensive overview, but it is also designed to be easily navigable, allowing barristers to quickly find the information they need. It is a valuable resource for barristers at all stages of their career, whether they are newly qualified or have years of experience in the field.
|VAT Deadlines||What is the VAT submission deadline?||VAT returns must be submitted to HMRC within 1 month and 7 days of the end of the accounting period.|
|VAT Deadlines||What is the VAT payment deadline? Is it different for Direct Debit?||The VAT payment deadline is the same as the submission deadline. However, if you pay by Direct Debit, HMRC will automatically take the payment 3 working days after the submission deadline.|
|VAT on Expenses||I paid for advertising my services, can I claim VAT on this?||Yes, VAT on advertising costs directly related to your practice can be claimed as input tax, provided you have valid VAT invoices.|
|VAT on Expenses||Can car insurance be included on the VAT return?||No, car insurance is not subject to VAT and so input VAT cannot be reclaimed|
|VAT on Expenses||Can I claim VAT on my professional indemnity insurance?||No, VAT cannot be claimed on insurance premiums as they are exempt from VAT.|
|VAT on Expenses||Can I claim VAT on my legal expenses?||Yes, you can claim VAT on legal expenses if they are directly related to your taxable supplies and you have a VAT invoice.|
|VAT on Expenses||Why are all fees received and paid into my account classified as “Drawings” rather than fees received and why is the tax rate on these “No VAT” when all fees contain 20% VAT?||As fees received are imported to a separate bank account to claim VAT, the transactions in the bank relating to this are posted to drawings to avoid duplication.|
|VAT on Expenses||Why were no bills included in the VAT return if only the output VAT on fees is handled?||If the Jack Ross service package only includes handling of output VAT, then input VAT from bills would not be included in the VAT return.|
|VAT on Expenses||Why would the purchase of a luxury bag be disallowed for tax and VAT purposes?||Luxury items for personal use, such as designer bags, are generally not considered a business expense and therefore cannot be claimed for tax or VAT purposes.|
However, while our FAQ guide is a helpful starting point, we understand that every barrister’s situation is unique and may require personalised advice. That’s why our team of VAT experts is on hand to provide tailored guidance and support. If you have further questions or require specific advice on your VAT returns, we encourage you to get in touch with us. You can call us directly on 0161 832 4451 or submit your query through our web form. Our team is ready and waiting to assist you with your VAT needs, helping to simplify the process and provide peace of mind.