HMRC guidance clarifies that input tax must normally be claimed in the accounting period when the tax became chargeable, but allows late claims under Regulation 29 if circumstances such as missing evidence or internal cut‑off dates apply. HMRC will not permit late claims if the capping limit has passed, if there is evidence of careless error or repeated late claims, and partially exempt taxpayers must recover only to the extent the tax would have been deductible. Staff should seek advice from the VAT Deductions Team or Tax Administration Policy Team when potential manipulation or contrived delays are suspected.

This manual provides HMRC staff with guidance on cross‑border exchange of information under UK international exchange agreements. It covers core principles, legal framework, specific forms of exchange, country‑by‑country reporting, automatic exchange of financial accounts, guidance on tax rulings, disclosable arrangements, mandatory disclosure rules, crypto‑asset reporting framework, and reporting rules for digital platforms.

HM Revenue & Customs confirms that the Extra Statutory Concession for linked goods, previously outlined in Notice 48, is no longer required. Supplies that were eligible for the concession will now be treated as single supplies under the standard VAT legislation, following existing case law. This change simplifies compliance by eliminating the need for the concession.

UK consumers buying from EU retailers may face extra customs duties, import VAT and courier handling fees on orders over £135, while orders £135 or less are exempt from additional charges. The new rules require EU sellers to register with HMRC and consumers can refuse extra fees but must pay to receive goods. Reclaiming overcharged duties and VAT is possible through specific customs forms, though courier fees are generally non‑reimbursable.

Fabian Barth examines how HMRC’s positions on input tax deduction have varied across cases, citing Royal Opera House, Hotel La Tour, and Littlewoods. He highlights contradictory stances on LVCR trade in the Channel Islands, underscoring the complexity of VAT compliance. The post emphasizes that court rulings and precedent shape the practical application of VAT rules.

Morrisons has lost a VAT court case, resulting in a £17 million tax bill. The ruling confirms the supermarket’s liability for unpaid VAT and underscores the importance of strict compliance for retailers. The decision may serve as a precedent for future VAT disputes in the UK.

The UK government has confirmed a mandatory e-invoicing regime set to launch in April 2029, covering B2B and B2G transactions. The plan likely adopts a four‑corner model using a localized Peppol standard, with phased implementation and potential incentives for SMEs. Businesses are urged to prepare early, engage in consultations, and assess technology and data readiness to meet the new compliance requirements.

UK companies will be required to use e-invoicing for all VAT transactions from January 2029. Storecove is hosting a webinar on January 15, 2026 to preview the upcoming change and explain implementation steps. The session will cover the regulatory requirements, impact on businesses, and how an API can simplify compliance.

The UK’s new ‘taxi tax’ imposes a 20% VAT on minicab fares, but Uber has restructured driver contracts from January 2026 to act as an agent, shifting VAT responsibility to drivers. Most drivers earn below £90 k and therefore do not charge VAT, keeping fares outside London unchanged, while London fares remain subject to VAT.

From 1 January 2025, the UK's long-standing VAT exemption for private education was removed. Private schools must now charge 20% VAT on their fees, significantly impacting the independent education sector.

Following consultation, the UK government confirmed mandatory e-invoicing for all VAT-registered businesses, with a phased rollout starting April 2028 for the largest businesses and full mandate by April 2029.