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Advantages and disadvantages of VAT grouping.
At Ashworth Treasure we can advise companies in the Lancashire area about group VAT registration. Here are some of the issues to consider.
VAT grouping occurs where two or more companies or limited liability partnerships (LLPs) are treated as a single taxable “person” for VAT purposes. A VAT group is treated in the same way as a single company registered for VAT on its own.
An unincorporated body, such as a sole trader or partnership, is also permitted to join a VAT group provided it makes taxable supplies and controls one or more companies or LLPs.
In general, the members of the group each have to have an establishment in the UK and be under common control. There are special conditions for VAT groups with an annual turnover of more than £10 million.
Advantages of group registration are:
As with most other areas of the tax system, VAT Groups are subject to detailed anti-avoidance provisions.
If you’re based in the Lancashire area and would like further advice on VAT group registration, please contact Ashworth Treasure.
14 Apr 2021
HMRC has confirmed it will be contacting potential claimants for the fourth Self-employment Income Support Scheme (SEISS) grant this month.
13 Apr 2021
The UK economy returned to modest growth in February despite the country being under lockdown but remains sharply below its pre-pandemic peak, according to the Office for National Statistics (ONS).