Partial Exemption & Non-Business Reviews

Those dealing with property development; charities; sports; education; and healthcare are all likely to be familiar with the pitfalls of paThose dealing with property development; charities; sports; education; and healthcare are all likely to be familiar with the pitfalls of partial exemption and the need to have an apportionment method in place to calculate the level of VAT that can be reclaimed.  In addition, many organisation (particularly charities) have non-business activities and are required to undertake a further layer of restriction that is often overlooked.

It is often the case that these methods have not been properly considered, for example:

• they don’t adequately cater for changes in the business,

• they were not beneficial for the business from the outset.

• the method is appropriate, but has not been implemented correctly as staff may have changed, or no longer understand the original purpose. 

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We can review the current method, suggest changes and assist in negotiations with HMRC to agree an alternative, more appropriate method.  We can also provide staff training to ensure there is a more thorough understanding of the procedures in place, to ensure the method is implemented correctly.