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
-
Late payment interest to be cut
A cut to the Bank of England base rate means there will be another reduction in HMRC's penalty interest rates. What are the new charges and when will they take effect?
-
Opt out of winter fuel payments by 15 September
HMRC has issued new guidance on the winter fuel payments. What do you need to know?
-
Change to IHT on pensions proposals
HMRC has published a policy statement announcing an important change to its plans to include pension savings in an individual's estate for inheritance tax (IHT) purposes. What’s the full story?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.