Our website uses cookies to enhance the visitor experience (what's a cookieCookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.). Are you happy for us to use cookies during your visits?
Please note: continuing without making a choice equates to giving us your consent, which you can withdraw at any time via our cookies policy page.

Tel: 01329 282222

Email: mail@rjg-accountants.co.uk

Free Consultation

Call today to receive an initial consultation worth £200 for FREE


HMRC consultation on Partial Exemption and Capital Goods Scheme

Newsletter issue - August 2019.

At Spring Statement 2019, the government announced that it would launch a call for evidence exploring ways to improve the operation of Partial Exemption (PE) and the Capital Goods Scheme (CGS), following the findings of the 2017 Office of Tax Simplification (OTS) VAT review.

HMRC have now published the consultation document covering both subjects. These are two areas of VAT which can involve a significant amount of administration for businesses, with complex calculations often being required for some businesses to determine the amount of input tax that they are entitled to recover.

The call for evidence is split into three sections:

  • the first section looks at the process for applying Partial Exemption Special Methods (PESMs) and the possible ways in which this might be improved to reduce burdens for taxpayers and HMRC alike;
  • the second section explores how the current PE de minimis limit could be changed to aid simplification; and
  • the third section considers possible policy solutions to issues caused by the CGS.

The consultation will run until 26 September 2019, with further announcements on proposals for future changes expected in time for the Autumn 2019 Budget.

The consultation document can be found here.

Free Tax & Business Tips


Resources

Click here for forms, reports,
calculators, tax calendar, tax rates, news, budget, company searches and more.

Become a Client

Click here to find out great
reasons why you should, get a quote and a FREE gift worth £500.

Click here RJG Accountants secure portal

Make an Enquiry