The article explains the UK Cash Accounting for VAT scheme, which allows VAT-registered businesses to pay VAT only when they receive payment, aligning tax liability with cash flow. It highlights the £1.35 million projected turnover threshold, the scheme’s benefits and limitations, and ongoing discussions about raising the eligibility threshold.
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GOV.UK · about 7 hours ago
UK guidance on customs procedures for goods moved into the UK for international events. It covers Temporary Admission, ATA Carnet, and import duty reliefs, including application timelines, duration limits, and applicable Additional Procedure Codes (APCs).
E-Invoice.app · about 12 hours ago
HMRC has confirmed that Peppol will be the core e‑invoicing network in the UK, with a mandate set for 2029. The decentralised model will allow businesses to exchange invoices directly through their software providers, and real‑time reporting will be considered later. Technical standards and a roadmap are expected at Budget 2026.
UK Government · 1 day ago
The UK government is consulting on extending online marketplace VAT liability to domestic sellers, requiring marketplaces to collect and remit VAT on sales by UK-based sellers when goods are situated in the UK at the point of sale. The consultation runs from 23 June to 18 August 2026 and aims to reduce non‑compliance and level the playing field for VAT‑compliant sellers.
Guardian · 4 days ago
The UK government has introduced a temporary VAT cut from 20% to 5% on a range of family-friendly activities, including cinema, theatre, attractions and children’s meals, running from 25 June 2026 until 1 September 2026. Businesses may choose to pass on the reduced rate, and the scheme also offers free local bus travel for children in England during August.
Withers · 5 days ago
The Court of Appeal ruled that public funds paid to further education institutions are third‑party consideration for the supply of education, placing them within the scope of VAT but exempt. HMRC accepts the judgment, will not pursue a further appeal, and maintains the current position pending consultation, meaning institutions can continue their existing VAT treatment until any future policy change applies prospectively.
VATIT · 5 days ago
HMRC has replaced its default surcharge system with a points‑based penalty regime effective 1 January 2023. Late submissions accrue one penalty point each, with a £200 financial penalty triggered at filing‑frequency thresholds, while late payments incur percentage‑based penalties and interest at the Bank of England base rate plus 4%. Businesses must appeal within 30 days of a penalty notice and can reset points after a compliance period.
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Key Takeaways
The scheme is available to VAT‑registered businesses with a projected turnover of £1.35 million or less.
Under the scheme, businesses can only reclaim input VAT once they have paid their supplier, so input‑VAT reclaims are delayed until payment is made.
No, businesses do not need to formally opt in or out via a separate registration process; they simply choose the accounting method.
Primary source
Read full article on LinkedIn by Emma JonesThis summary was published on VATfaqs.com on 19 January 2026. It relates to VAT developments in United Kingdom. The original source is LinkedIn Article by Emma Jones.
