Streamlined process for partial exemption alterations

An accelerated process has been made available for partially exempt businesses to request temporary alterations to their partial exemption special method (PESM) in light of changes to their business practices because of the pandemic.

HMRC has published a business brief explaining that it will be using an accelerated process to make sure coronavirus-related changes to partial exemption methods are considered and where appropriate approved swiftly. All partial exemption special method requests should be emailed to: PESMcovid19@hmrc.gov.uk with the declaration that the method proposed is fair and reasonable. The same accelerated process will be available to businesses who use the capital goods scheme to calculate input tax recoverable on capital items they use for taxable and exempt purposes.

If HMRC is satisfied that the aim of the proposal is to address coronavirus issues only to facilitate a quick decision it will restrict...