If you have exempt or non-business activities, you will restrict or block the recovery of VAT you incur on expenses. Annual adjustment calculations need to be performed over the coming months and they will be affected by COVID measures.
HMRC has announced that temporary alterations can be made to VAT calculations to reflect the impact that COVID has had over the last year. These changes should be considered by anyone that is partially exempt. Adjustments may have to be made to ensure you have recovered the correct amount of VAT over the last 12 months and you continue to do so until COVID measures subside.
We understand that the majority of this year’s VAT recovery calculations are affected and could result in too little or too much VAT being claimed back from HMRC. Partial Exemption annual adjustments, (which need to be completed and disclosed) between June and August, would all benefit from being reviewed.
Join us...
In our upcoming webinar, our experts will highlight when the partial exemption calculations apply, as well as the common issues and opportunities. The panel will also explain the temporary procedures that apply to this year’s COVID affected annual adjustment calculations.
To attend our webinar, please register your interest.
Who does this deadline apply to?
This affects anyone that is VAT registered and makes exempt supplies. For example those involved in the arts, culture, property, education, health, care, welfare and financial sectors. Anyone who receives commission income from financial services companies, insurance companies and those with ancillary property rental income.