Graham Elliott, director, City & Cambridge Consultancy on effective VAT revision prior to date of registration, capital goods scheme, VAT cases
HMRC revises input tax
Following many months’ debate concerning HMRC’s apparent revised policy to the effect that VAT on costs incurred prior to the effective date of registration (EDR) ought to be apportioned to take into account use prior to the effective date, HMRC has finally issued a brief which reaffirms the traditional view of the position.
Brief 16(2016) accepts that HMRC’s approach has not been consistent, although it asserts that its policy has not changed at any stage. The Brief states the following: VAT on services received ‘within six months of the EDR’ (by which HMRC presumably means ‘up to six months prior to the EDR’) can be claimed (assuming fully taxable use).
VAT on
