HMRC Admin 21 Response

Hi Emma12,
If the goods are sold via an OMP then the OMP will have reposnsibility to account for the VAT if the goods are sold on to individuals under a value of £135.
If the goods are of a value over £135 then the end customer pays the import VAT and so the supply would be Outside The Scope of UK VAT.
Thank you.

Hi BlueFuzz,
It is not possible for a builder to buy over the counter goods at 5% VAT.
The 5% rate will only ever arise where the supplier is supplying and installing goods and so a shop selling materials are obviously not doing that.
When a VAT registered business completes their VAT return they will itemise all of the VAT they have charged and all of the VAT they have incurred. If this results in a repayment to the business then HMRC will pay this to the business within 30 days and generally much sooner than this.
Thank you.

Hi misfitsapparel,
Please can you contact our Helpline so that we can open up your account and confirm the position.
Please see below:
VAT: general enquiries.
Thank you.

Hi Colnmill,
There is a DIY scheme available.
However this is only applicable where either a new house is built or where renovations are carried out on a house which has not been lived in for 10 or more years.
Please see the guidance below:
Claim a VAT refund for a conversion if you're a DIY housebuilder
If you have created a company then the company can register for VAT only if it is making taxable supplies.
If the company becomes VAT registered then it is allowed to recover VAT as input tax in the course of it's business.
Please see the guidance below:
10. Introduction to input tax
3. Working out whether you need to register.
Thank you.

Hi Jawe16,
You do only need to register for VAT if your UK taxable supplies are over £90K in a rolling 12 month period.
Please see the guidance below:
3. Working out whether you need to register.
There are different entities which you could register for VAT.
If you are a single person you would register as a sole trader or if you set up a limited company you can register a limited company for VAT.
You may want to speak to an accountant regarding the benefits of setting up a limited company.
You would only set up a partnership if there is more than one person in business.
Please see the information below:
VATREG08000 - Entity to be registered: contents
Childrens clothes are generally zero rated for VAT purposes when they meet certain criteria.
Please see the guide below:
Young children's clothing and footwear (VAT Notice 714).
If you have a query about income tax please speak with our Self Assessment team as below:
Self Assessment: general enquiries
If you are drop shipping the goods to the UK from overseas then the value of the goods will determine how this is treated.
Can you confirm if the goods are above or below £135 and whether the customers are individuals or businesses.
Thank you.

Hi Rahul2024 prajapati,
If you supply digital services to customers outside the UK then this will be Outside the Scope of uk VAT.
If the supplies are to businesses in the EU then the VAT will be accounted for under the reverse charge procedure by the EU company.
However if you supply these services to individuals in the EU then there will be a requirement to either register for VAT in the countries where your individual customers belong or you can register for the Non Union VAT MOSS system.
Please see the guidance below:
The place of supply of digital services
Defining digital services
Thank you.

Hi j2565kimo,
What you are describing is too complicated to go into in this forum.
You would still complete a Self Assessment tax return (SA100). You would also need to complete the residence section SA109,as will as SA103.
You will not be able to use the online HMRC tax return and will have to submit a paper tax return or buy a commercial tax return to submit online.
For more information, you would need to contact our Self Assesment helpline on 0300 200 3310 or contact our webchat facility at Contact HMRC.
Thank you.

Hi A C,
If the shares are all in the same company and pool and purchased after 06/04/2008, the conditions at S104 holding apply.
Please see: CG51575 - Share identification rules for capital gains tax from 6.4.2008: the Section 104 holding in detail.
Thank you.

Hi Calum,
Please refer to guidance at: CRYPTO21250 - Cryptoassets for individuals: Income Tax: airdrops.
Thank you.

Hi Johnsmith1,
We are unable to review personal matters in this forum.
So that we can review the information we hold please contact our Self Assesment helpline or contact our webchat: 
Self Assessment: general enquiries.
Thank you.