HMRC has introduced a new policy for dealing with VAT on unfulfilled supplies or services – such as a situation where a hotel has been booked and pre-paid, but then cancelled with no refund payable – and this is intended to make life easier for businesses. There have been some similar high profile cases surrounding VAT in pre-payment involving large corporates like Air France and the fitness leisure group Esporta. The new policy comes into effect in March so how will it work? Read all about it: