Commentary

V7.364 Partial exemption special methods—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.364 Partial exemption special methods—planning points to consider

Part V7 Tax planning | Commentary

V7.364 Partial exemption special methods—planning points to consider

The following planning points should be given consideration.

  1.  

    •     It is important to regularly review the position of all partly exempt businesses and identify whether to apply to HMRC for a special method. These applications are appropriate when it is considered that the standard method does not give a fair and reasonable recovery of residual input tax.

  2.  

    •     In many cases, the standard method gives a perfectly fair result – and overall is easy to calculate. However, it is important to be aware of alternative methods of calculation, particularly those based on

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