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Where now for the legislation on pre-registration input tax claims?
KEY POINTS
- HMRC restricted a client’s pre-registration input tax claim but withdrew from the appeal hearing.
- Does ‘consumed’ mean the same as ‘used’?
- HMRC should decide whether it has interpreted the law correctly.
In the context of pre-registration input tax we live in interesting times. Neil Warren’s article ‘Moving the goalposts’ concerned an apparent change in HMRC policy on allowing VAT on goods purchased before registration. So what has changed?
Importantly HMRC has pulled out of what was hoped to be a test case on pre-registration input tax claims.
In summer 2014 my client submitted its first VAT return for its newly registered business. The claim was queried by HMRC’s repayment team and after much correspondence a restriction was imposed resulting in 50% of VAT being disallowed on the purchase of a van...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
