Direct telephone number: VAT Registration helpdesk

Recently we were registering a client for VAT. Usually you get the VAT registration number in couple of days.

This time the application did not go through, but HMRC sent a clear and detailed email with the documents required.

We sent those documents but did not hear back for over a week.

I searched for a telephone number and got to the following webpage:

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/vat-enquiries

Now they even have a web-chat option and the web chat was very helpful and they gave me a direct number for VAT registration helpline as 0300 523 245.

Good luck !

24th February 2022

Telephone number to check VAT registration application status is 0300 322 7870

Franchise fee tax deductible?

A very clear answer is given in HMRC Agent tool kit – Capital Vs Revenue: Page 15

Sole Trader/Partnership Capital Expenditure. No deduction in computation of trading profits.

Deduction available under Capital Gains Tax on sale.

Companies Special Corporate intangible assets regime applicable.

Deduction available as per accounting treatment – amortisation over the lifetime of the franchise agreement is normally allowable.

This again demonstrates how useful agent toolkits are and should be used regularly.

Link to Took kit

Moral of the story:
When taking a franchise always take it under a limited company.

Dividend Income from UK companies are tax free for non-residents

Suppose a shareholder is resident in Dubai a tax free country and a UK company pays him/her a dividend.

The whole dividend amount is tax free.

 

HMRC link: https://www.gov.uk/hmrc-internal-manuals/savings-and-investment-manual/saim1170

HMRC Help-sheet HS300 is also helpful.
https://www.gov.uk/government/publications/non-residents-and-investment-income-hs300-self-assessment-helpsheet/hs300-non-residents-and-investment-income-2015

 

Another good article on taxation.co.uk https://www.taxation.co.uk/Articles/2016/05/31/334836/readers-forum-barnstorming

 

Taxation in action: https://www.theguardian.com/business/2005/oct/21/executivesalaries.executivepay

 

 

UK Incorporated company always tax resident and file a tax return ?

As per Corporation Act 2009 section 14 any company incorporated in the UK is normally classified as UK resident company and thus subject to UK corporation tax and has to file a Tax return.

HMRC guidance clearly states it, see link below:
https://www.gov.uk/hmrc-internal-manuals/international-manual/intm120030

For background on Company residence see HMRC international manual, link below:
https://www.gov.uk/hmrc-internal-manuals/international-manual/intm120000

Thus the company needs to file tax return here in the UK.

If the company is also liable to taxation in another country as well example Norway the company will need to file tax return in Norway and get credit for tax paid in the UK under Article 25 of UK-Norway DTA. 

`One off` increase in VAT turnover

In case turnover increases as a `one off` and the business does not wish to register for VAT.

We have to write to the HMRC with evidence to convince them that turnover will not go over £83k (current de-registration threshold) in next 12 months.
HMRC Link below (see bottom of the page):
https://www.gov.uk/vat-registration/when-to-register

Primary legislation (see Clause 3):
http://www.legislation.gov.uk/ukpga/1994/23/schedule/1