HMRC publish details of “u-turn” on pre VAT registration input tax

HMRC have accepted that there is no need for VAT on assets bought in the four years prior to VAT registration to be adjusted for depreciation.

It also advises that businesses that were required to adjust their pre-registration VAT claims could submit claims to correct the error.

Full details can be found in Revenue & Customs Brief 16/2016.

If you have made an adjustment on your input tax claim and you require further advice on how to rectify the position please contact our VAT Manager, Nigel Smith on 0191 285 0321 or email nigel.smith@taitwalker.co.uk.

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