VAT definition meaning

Checklist No dedicated legislation, including tax legislation, governs outsourcing, and the expression has no precise legal definition. Accordingly, each outsourcing arrangement is determined by its own circumstances and will produce a different combination of tax considerations. This Checklist identifies the headline tax points that ought to be assessed in relation to a contractual outsourcing. For the purposes of this Checklist, it is assumed that: the arrangement comprises a direct supply of services by a third-party service provider to a customer both the supplier and the customer are corporate bodies, and both the supplier and the customer are resident in the UK, save for the final section on cross-border tax issues The Checklist is organised into the following three sections: establishing outsourcing arrangements running outsourcing arrangements, and cross-border outsourcing arrangements This Checklist should be read together with the following Practice Notes: Outsourcing—general tax issues, and Outsourcing and VAT ...

R (oao Anglia Ruskin Students’ Union) v HMRC [2025] EWHC 296 (Admin) Supplies of catering generally bear the standard rate of VAT, as they sit outside the zero rate in Group 1 of Schedule 8 to the Value Added Tax Act 1994 (VATA 1994), and are excluded from that relief. An exception applies where catering is supplied in close connection with an educational supply by an eligible body, in which case exemption may arise under VATA 1994, Sch 9, Group 6, Item 4. It was common ground the Union was not an eligible body for the purposes of VATA 1994, Sch 9, Group 6. The dispute concerned how the concession in paragraph 5.5 of HMRC Notice 709/1 should be construed and applied...

In this issue Budgets and Finance Bills International Taxes management and litigation Companies and corporation tax Anti-avoidance Employment taxes Individuals and income tax Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Budgets and Finance Bills Autumn Budget 2024 The Chancellor of the Exchequer, Rachel Reeves, will present the Autumn Budget on Wednesday 30 October 2024. As is our custom, we will produce overnight analysis of the principal business tax measures announced, which will be published on the morning of Thursday 31 October 2024. International Jersey adopts legislation to implement Pillar 2 from 2025 Jersey has enacted legislation to introduce a Pillar 2 Income Inclusion Rule and a multinational corporate income tax from 2025, honouring Jersey’s commitment to implement the OECD’s global minimum tax framework for large in-scope multinational groups. See: LNB News 24/10/2024 1. New corporate re-domiciliation report published...

In this issue: Partnerships Individuals and income tax Budgets and Finance Bills International VAT Taxes management and litigation Employment taxes Anti-avoidance Devolution Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Partnerships HMRC guidance on condition C of the LLP salaried member rules HMRC has agreed to revise its guidance on how condition C of the LLP salaried member rules applies within sections 863A–863G of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005). This revision follows discussions with the CIOT about the operation of the contribution criterion requirement in particular. HMRC has told the CIOT that its stance remains that the TAAR is engaged where the primary purpose, or one of the principal purposes, of the arrangements in question is to ensure the Salaried Member Rules are disapplied. When assessing this, HMRC will continue to have regard to the policy...

Stop Press: Section 49 and Schedule 7 of the Finance Act 2026 revise the UK’s domestic rules on UK permanent establishments of non-UK companies, applying to accounting periods (for corporation tax) and tax years (for income tax) that start on or after 1 January 2026. The measures update both the definition of a UK permanent establishment and the methodology for attributing profits to a UK permanent establishment, each intended to align more closely with the OECD Model Tax Convention. They also adjust how the investment manager exemption operates. For further details, see News Analysis: Budget 2025—Tax analysis — International. A non-UK resident company trading in the UK may either incorporate a UK subsidiary or trade through a permanent establishment (PE), commonly a branch. This Practice Note sets out the key UK tax considerations relevant to that choice, while recognising that tax is only one of several matters to be weighed...

This Practice Note examines UK tax considerations for the operation and termination of a joint venture conducted through a partnership. For the purposes of this note, it is assumed that: the joint venture parties are UK tax resident corporate entities the joint venture partnership vehicle is also UK tax resident, and the venture’s activities are undertaken in the UK For information on: the establishment of a joint venture partnership, see Practice Note: Tax implications of establishing a joint venture partnership, and joint ventures with a non-UK element, see Practice Note: Tax implications of international joint ventures This Practice Note does not address certain investment partnerships that are unit trust schemes which may not be treated as transparent for tax purposes. Tax implications of operating a joint venture partnership In broad terms, a joint venture partnership operates in the same manner as any other partnership, since partnerships are, by definition, joint undertakings. Accordingly, what...

To cut expenditure and drive efficiency, many companies now sub-contract elements of their operations to external providers, commonly referred to as ‘outsourcing’. There are no dedicated statutes, tax rules included, that govern outsourcing arrangements, and the term has no precise legal definition. As a result, each outsourcing deal turns on its own facts and throws up a different combination of tax considerations, VAT among them. This Practice Note highlights the key VAT points to assess when dealing with outsourcing. For broader tax considerations, see Practice Note: Outsourcing—general tax issues. This Practice Note addresses contractual outsourcing; for joint venture outsourcing, see: Joint ventures and tax—overview... VAT liability of outsourced supply A central question for outsourced services is how their VAT liability is treated. As a general rule, unless the services fall within a VAT exemption, qualify for the zero rate, or sit outside the scope of VAT (for example, certain intra-group supplies), those services will attract VAT at the standard rate...

The Commercial Rent (Coronavirus) Act 2022 (CR(C)A 2022) applies to ‘protected rent debts’ which are, broadly: amounts for rent, service charges, interest and value added tax (VAT) payable under a tenancy to which Part II of the Landlord and Tenant Act 1954 (LTA 1954, s 23) applies (including where contracted out), provided that: all or part of the business or the premises were required by coronavirus (COVID-19) regulations to close; and the sums relate to the ‘protected period’, running from 21 March 2020 until the earlier of: the final day the business or premises had to close, or were subject to regulation governing the way the business operated or the use of the premises; and in England, 18 July 2021, and in Wales, 7 August 2021 Accordingly, it is important to determine whether a private education facility falls within the scope of the LTA 1954—which depends on the tenancy satisfying...