April Fools! Which of these VAT facts is a fib?
It’s April 1st today, which means you may be spending the morning avoiding pranks and tomfoolery - or trying to identify the traditional slew of fake news stories in the papers.
But when it comes to outrageous jokes, even the best April Fool’s Day tricks can often pale in comparison to the rules that HMRC sets for the UK’s tax system. From overly complicated National Insurance to the quagmire of confusing VAT (who can forget the infamous pasty tax?!) there’s plenty of legislation that could easily trip you up and leave you with egg on your face.
So here’s the challenge: there are nine statements below about animal-related VAT, three of them are incorrect - the other six are completely true. Honest! All you have to do is leave a comment and tell us which three “facts” are really a fib. The first correct answer will be rewarded with some FreeAgent sticker swag!
Which three VAT facts are an April Fool’s fib?
- Honey bees are zero-rated for VAT, but bumblebees are standard-rated.
- Trout are zero-rated for VAT, but perch are standard-rated.
- Nutritional supplements and medicines for farm animals are both standard-rated for VAT.
- Dog food sold exclusively for racing greyhounds is zero-rated, but if it’s sold for greyhounds, it’s standard-rated.
- Farm cats and dogs both count as working animals for VAT.
- HMRC say that ferrets are a pet species, but rabbits are not.
- A supply of straw to feed farm animals would be zero-rated, but if the straw is sold to market gardeners it’s standard-rated.
- HMRC specify which breeds of duck can be zero-rated for VAT.
- Koi carp are standard-rated for VAT, but ordinary carp are zero-rated.
- Spreadsheets versus FreeAgent: an accountant’s point of view
- Autumn Statement 2016: contractors feel the impact
- Autumn Statement 2016: how could the new chancellor show he cares about small businesses?
- FreeAgent is now a public company!
- 3 spreadsheet horror stories from the world of work