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HMRC have noted that some organisations have been using extra-statutory concession 3.35 to rework previously submitted VAT returns, and have presented claims for 'overpaid' VAT.
The Revenue has said (in Revenue & Customs Brief 06/09) that the concession should not be used to make retrospective adjustments, as such returns were correct in law.
Any such claims will therefore be rejected.
The concession permits non-profit making membership bodies that supply a single package of benefits to their members to apportion their subscriptions to reflect the value and VAT liability of the individual benefits, without regard to whether there is one principal benefit.
In some cases, the claims have alleged 100% zero rating, due to the principal benefit being zero rated.
These claims will be given due consideration by HMRC, provided the claim is based on the application of the law, as opposed to retrospective use of the concession.
