HM Revenue & Customs News – February 2012

Monday, February 27, 2012

by Nick Ryan

HMRC released a number of briefs over the last few months including:
Revenue & Customs Brief 01/12, issued 23 January 2012: this Brief outlines HMRC’s policy with regard to claims for a repayment of VAT, without evidence, by a business that has been required to re-register for VAT.
This follows a situation where a business has been registered for VAT and has reclaimed VAT on goods used by the business and where that business subsequently cancels its registration on the basis of reduced turnover. Where this occurs then the business must undertake a deemed self-supply for these goods held after the cancellation of the VAT registration. If the business has continued trading and, at a later date, exceed the VAT registration threshold and is required to re-register for VAT then HMRC have confirmed, by informal concession, that they will allow a reclaim of VAT on these goods on hand where the person was registered under the same legal entity.
Revenue Customs Brief 05/12, issued 27 February 2012: This brief provides for new guidance on the VAT treatment of caravan pitch rentals largely to confirm that the exemption only applies to pitches for caravans used as private residences. Pitches used for holiday/leisure or with restrictions on occupation or were provided for less than a year are subject to VAT at the standard rate. This change applies from 1 March 2012.

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