More toolkits updated
Pub Date
Value Added Tax
HM Revenue & Customs

HMRC has recently updated two further toolkits for the 2015-16 tax year.

  1. The VAT input tax toolkit sets out common areas of risk in relation to completing a VAT Return. The toolkit may also be helpful to help tax agents and advisers review a client’s VAT return. For example, the toolkit includes a summary of the correct treatment of input tax incurred in the course of entertaining overseas customers.
  2. The VAT partial exemption toolkit has also been updated. A business that incurs expenditure on taxable and exempt business activities is partially exempt for VAT purposes. The toolkit outlines some common risk areas and includes information on attribution, apportionment, changes of intention and the Capital Goods Scheme.

HMRC Toolkits have been designed to provide information on previous risks that have been identified. It is hoped that this information will help accountants and agents identify the necessary checks that they can carry out. This in turn will assist taxpayers in proving that they take reasonable care in completing their tax return. The use of the toolkits by accountants and agents is optional.