Twelve festive VAT tips

This festive period it seems like a good excuse to present a special VAT version of the popular carol ‘The twelve days of Christmas’. See 12 VAT days of Christmas for the full version in case readers are inspired to sing a rendition of it after perhaps their Christmas lunch.

On the first day of Christmas my true love sent to me … a farmer in a VAT hole.

‘Hello Santavat ’ said Farmer Giles. ‘I’ve got to raise some cash to pay for the family’s Christmas presents so I intend to sell a tractor. Presumably I don’t need to charge VAT because I bought it second-hand five years ago and didn’t pay any tax?’

‘That’s right ’ replied Santavat gently stroking his perfectly trimmed white beard. ‘The sale will be subject to the margin scheme for second hand goods. You will...