de minimis
Writing on the small things
The de minimis rule says some things are too small to bother with. We disagree — the small things in tax are usually where the money is.
- annual-accountingVAT-schemescash-flowsmall-business
The VAT Annual Accounting Scheme — one return a year, and who it actually suits
One VAT return instead of four sounds like an obvious win. For some businesses it is; for others it quietly ties up cash. Here's how the scheme works and where it stops being a good idea.
- charitiespartial-exemptionVATnon-business
VAT for charities: partial exemption, business vs non-business, and the new donation relief
Charity VAT is one of the trickiest corners of the system — a mix of exempt income, non-business activity and partial exemption that catches out organisations who assumed "charity" meant "no VAT to worry about."
- MTDincome-taxVATcompliance
MTD for Income Tax is live — what changes if you already do MTD for VAT
Making Tax Digital for Income Tax started in April 2026. Being compliant for VAT doesn't make you compliant for Income Tax — they're separate systems, with their own thresholds and their own start dates.
- migrationMTDcloud-accountingpartial-exemption
Coming off old VAT software onto a cloud ledger — without the pain
Plenty of businesses and charities are still running a margin scheme or partial exemption on a desktop package or a spreadsheet because moving feels risky. With MTD tightening, here's how to switch without losing your audit trail.
- margin-schemeglobal-accountingsecond-handantiques
Beyond cars: the margin scheme for second-hand goods, and when to use global accounting
The margin scheme isn't just for car dealers. Antiques, collectables, vintage clothing, used books — if you buy second-hand and sell on, it can cut your VAT bill. For high-volume, low-value stock there's an even simpler version.
- margin-schememotor-tradesecond-handXero
VAT margin scheme for used cars: do you pay VAT on second-hand cars?
Do you pay VAT on used cars? How the VAT margin scheme for cars works: VAT on the dealer's margin only (1/6), who can use it, and the stock book rules.
- partial-exemptionde-minimisbeginner-guide
What is de minimis VAT? The de minimis rules, limits and tests explained
What is de minimis VAT? How the VAT de minimis rules work for partially exempt businesses: the £625-a-month limit, the 50% test, simplified Tests 1 and 2, the annual test, and worked examples.
- TOMStour-operatorsXeroMTD
TOMS in Xero — what works, what doesn't, and where the workarounds break
The Tour Operators Margin Scheme is the second-most awkward UK VAT regime to handle in cloud accounting software, after partial exemption. It's also unusual in that — unlike partial exemption — the affected businesses almost always know they're affected. They're tour operators. They've heard of TOMS. What they may not know is how thoroughly their accounting platform fails to support it.
- partial-exemptionannual-adjustmentaudit-trail
The annual adjustment trap: how partial exemption errors compound silently
The annual adjustment is the part of partial exemption that catches even careful practitioners out. By the time you reach year-end, the figures supporting your provisional quarterly calculations are anywhere between three and twelve months stale.
- partial-exemptionMTDXeroQuickBooksSageFreeAgent
Why Xero, QuickBooks, Sage and FreeAgent don't handle partial exemption (and what HMRC actually expects)
There's a curious gap in the UK accounting software market. The four major small-and-mid-market platforms collectively serve more than 90% of UK SMEs. None of them automate partial exemption. This isn't a feature roadmap miss; it's an architectural decision, and HMRC has quietly accommodated it for years.
- margin-schemesexplainers
Why one sixth?
The 1/6 fraction sits at the heart of every UK margin scheme calculation. Here's what it means and why it has nothing to do with 20%.
- announcements
Introducing de minimis
A new editorial corner from the team at onesixth — short, sharp writing on margin VAT, TOMS, and the unloved corners of UK indirect tax.
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