Punnit Vyas and Kevin Hall consider the impact of the recent changes to VAT for sole traders and partnerships.
The rules on VAT grouping recently underwent some changes as a result of legislation introduced in the Finance Act 2019, effective from 1 November 2019. These changes provided a further dimension for advisers to consider when advising their clients, expanding planning opportunities but also adding to the numerous complex rules already in existence in the area of VAT grouping. In this article, we will consider the impact of the recent changes for sole traders and partnerships and also take a look at the recent case of Melford Capital, which highlights the importance and complexities of VAT groups in the context of financial services.
Extension of VAT grouping to unincorporated businesses