Option to tax changes from 1 February
From 1 February, HMRC will no longer acknowledge receipt of paper option to tax notifications. How do you ensure you receive evidence of the notification after that date?
By making an option to tax, a business can charge VAT (and therefore recover input VAT) on the sale or letting of land or non-residential property when the supply would otherwise be exempt. HMRC has issued a brief describing the changes to processing option to tax forms which take effect from 1 February 2023. From this date it will no longer issue an acknowledgement letter for the notifications it receives. This could lead to problems later on if HMRC claims not to have received your option to tax notification. However, if you submit the notification via email to optiontotaxnationalunit@hmrc.gov.uk, you will receive an automated response which will show the date the notification was submitted. Notifications sent any other way, e.g. by letter, are still valid but will not be acknowledged by HMRC. It's hoped that by scrapping the acknowledgement letters, HMRC will be more efficient in this area.
Related Topics
-
Don’t overlook the partial exemption annual adjustment
As VAT year ends approach for many businesses, HMRC’s guidance highlights the need to carry out the partial exemption annual adjustment. This is often overlooked but can have a direct impact on recoverable VAT. What do you need to check?
-
MONTHLY FOCUS: USING YOUR COMPANY TO DIVERT INCOME TO FAMILY MEMBERS
Operating a business through a limited company is less tax-efficient than it used to be. However, it can still be a very useful way of diverting income to other family members. In this Monthly Focus, we look at the methods, and associated considerations, involved in doing this.
-
HMRC updates guidance on information notices
HMRC has updated its Compliance Handbook guidance on the use of information notices, with changes made on 18 March 2026. The revisions clarify how HMRC should request information during enquiries and place greater emphasis on proportionality. What does this mean in practice?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.