Highlights from the broader tax news for the week ending 29 June 2022, including: an increase in response times for VAT non-statutory clearance requests; and an update to HMRC’s VAT input tax toolkit.
HMRC updates response times for VAT non-statutory clearance requests
HMRC has updated its guidance on non-statutory clearances to provide an up-to-date estimate of response times. Although HMRC aims to respond to non-statutory clearance requests within 28 days, its guidance has stated an estimated response time of eight weeks for VAT clearances since October 2017. This has now been revised to state that VAT non-statutory clearance requests are currently taking around 12 weeks to process.
The guidance states that taxpayers can follow up non-statutory clearance requests by emailing email@example.com.
HMRC releases updated VAT input tax toolkit
HMRC has published an updated VAT input tax toolkit – its guide for anyone completing a VAT return highlighting key input tax risks. The main addition appears to be commentary regarding electricity costs of charging electric vehicles for business use. HMRC states that the VAT on these costs can be reclaimed, subject to normal rules, where the vehicles are charged at work or at public charging premises. The updated toolkit also removes references to importing goods, although it is not clear why.
Other than changes to the content, the latest version has been released in a new file format with updated links to relevant guidance.
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.