VAT on transport can raise a question for some people, especially when preparing for a VAT return. It is important to remember to always ask for a VAT receipt from your driver/ticket issuer showing the VAT number of the organization.

There are many rules regarding food and drinks and how VAT is calculated on these. The applications are often either standard rate or zero rate for VAT purposes. There are many rules regarding food and drink in retailers and grocer’s, but this article will focus on food prepared and supplied by an organization.

Tips are usually voluntary payments made to employees by a customer; tips are paid voluntarily and are not required as per the customer’s receipt, and so there is no VAT to be paid on these. If an organization includes a service charge on their invoices or receipts, which a customer is expected to pay, then these are not classed as voluntary payments and VAT is applied at a standard rate.

The monthly, or weekly, pay information must be sent to HMRC before the employee’s pay reaches them. The information on salary, wages, taxes and deductions must be with HMRC by the 19th of each month, with PAYE tax payments reaching HMRC by the 22nd of the month. Payslips must be either printed out or electronically passed on to the employees, and must show the total gross wages, tax, NI and other deductions, and the net wages that will be paid to the employee. Other information will vary depending on software used and if the payroll team make custom changes.