Festive VAT tips: December 2022

‘I am the VAT fairy from Vatland’ said Tinkerbell to Manchester based accountant Joseph Dickens. ‘I am here to give you free answers to five VAT questions of your choice – to ease your worries about dealing with the nation’s favourite tax.’

‘You’re from Vatland? Don’t you mean Lapland?’

‘No Vatland I only deal with VAT not any of the other strange taxes that you have in your country.’

Joseph knew that Tinkerbell’s surprise appearance had given him a fantastic Christmas opportunity to get his thinking clear about some VAT issues that had recently confused him. When it came to VAT he usually tried to delegate client questions and challenges to his trusted wife and business partner Mary.

New penalty system for late payments

‘OK’ he said sipping a glass of mulled wine to celebrate the closure of his...