VAT clearance for determining the correct rate to apply

VAT clearance for determining the correct rate...

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I notice HMRC have a service providing clearance or approval for transactions in regard to VAT.

Does anyone have much experience of this service and how well it works?

I have a new client setting up a new business and my research indicates that the taxable status of his transactions fall into a very grey area; nothing dodgy I would hasten to add .. just a grey area. Some people I have spoken to say their transactions will be exempt; other say they will be taxable Will HMRC require details about the actual company or just the basic principles at issue to provide a response?

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chips_at_mattersey
By Les Howard
22nd Nov 2014 18:38

HMRC Clearance should provide you with certainty, but my recent experience is that the outcomes are patchy, with one Clearance having to be corrected.

HMRC will require details of the company, and the proposed transactions. They will not respond to an enquiry about an un-named company, nor a theoretical transaction.

You might consider seeking a Counsel's Opinion, or advice from a VAT Specialist. That would also provide options as to how the transaction might be tweaked, so as to provide perhaps a more VAT-efficient arrangement.

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