UK VAT splitting update

Fri 7th Jul 2017

The UK’s HMRC has added a new tax avoidance arrangement to its list of prohibited schemes.  Labelled number 38 in HMRC’s list, this concerns attempt to avoid VAT registration and properly charge UK VAT at 20%.

HMRC is targeting splitting of invoices for single transactions.  This includes where multiple suppliers are used for a single supply.  HMRC has indicated that it will review such scenarios to detect if some/all the suppliers are creating the structure to keep their turnover.

Click for free British VAT info