TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

VAT Notes 2/2010 and Revised VAT Notice 700/43: Default Interest

VAT Notes 2/2010

HMRC publish VAT Notes quarterly. These contain a summary of all recent changes to the VAT rules and announce future changes.

Vat Notes 2 of 2010 has just been published and highlights of this include: – online filing for VAT, changes to the option to tax on supplies of land and buildings, partial exemption de-minimis rules and clarification on EC sales lists for services post 1 January 2010.

Also included is a full list of New and Revised VAT publications and Information Sheets in 2010. The full text of the publication is available at http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&propertyType=document&id=HMCE_PROD1_030512

Revised VAT Notice 700/43: Default Interest

HMRC have also published Revised VAT Notice 700/43. This notice explains how default interest works and when it is applied.

Default interest was first introduced by section 18 of Finance Act 1985 and it affects VAT periods starting on or after 1 April 1990. Initially it is charged where appropriate on any amount of VAT which has been underdeclared or overclaimed, from the time the amount should have been paid to the time it is assessed.

Default interest is also intended to provide commercial restitution for the loss of understated or overclaimed VAT and should not be considered a penalty. See the full text of the Notice at http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&propertyType=document&id=HMCE_CL_000074