HM Revenue & Customs has unveiled its proposals on reverse VAT charges in relation to carbon trading.
Due to escalating VAT fraud around carbon trading HMRC introduced a zero rate of VAT in July 2009 – while it awaited an EU-wide directive.
The taxman has now unveiled its proposed implementation of a reverse charge on VAT payments on carbon trading. At the same time the zero rate of VAT will be withdrawn.
From 1 November, subject to parliamentary process, it will be the responsiblity of the customer rather than supplier to inform HMRC of VAT payments on carbon emissions, purchased through the EU emissions trading scheme.
The EU-wide directive to provide a reverse option for all member states was adopted in March.
Andrew Tyrie suggests there will not be enough time to implement Making Tax Digital (MTD) by April 2018
The ACCA has announced a partnership with UK research and development tax reclaim specialist RD Tax Solutions
The tax HMRC expects is underpaid by large companies through “transfer pricing” has risen by 60%
The chancellor has “missed an opportunity” to restore business confidence and encourage UK investment, said Mazars