Option to tax changes from 1 February
From 1 February, HMRC will no longer acknowledge receipt of paper option to tax notifications. How do you ensure you receive evidence of the notification after that date?
By making an option to tax, a business can charge VAT (and therefore recover input VAT) on the sale or letting of land or non-residential property when the supply would otherwise be exempt. HMRC has issued a brief describing the changes to processing option to tax forms which take effect from 1 February 2023. From this date it will no longer issue an acknowledgement letter for the notifications it receives. This could lead to problems later on if HMRC claims not to have received your option to tax notification. However, if you submit the notification via email to optiontotaxnationalunit@hmrc.gov.uk, you will receive an automated response which will show the date the notification was submitted. Notifications sent any other way, e.g. by letter, are still valid but will not be acknowledged by HMRC. It's hoped that by scrapping the acknowledgement letters, HMRC will be more efficient in this area.
Related Topics
-
Why is HMRC checking PVA more often?
Your business imports goods and accounts for VAT by applying postponed VAT accounting (PVA) on its returns. HMRC is scrutinising returns and issuing large assessments in some cases. What can you do to reduce the risk of getting it wrong?
-
HMRC text or scam? Check before you act
HMRC is contacting some taxpayers by text this week about overdue Self Assessment liabilities and is also sending updates about VAT registration applications. At the same time, it has expanded its guidance on spotting fake HMRC messages on social media. How can you tell whether a message is genuine?
-
Electronic VAT return and payment due