Annual Adjustments – Final Reminder!

We had a reminder on this 3-months ago, but given the importance, it’s useful to flag this just in case.

Organisations with exempt or non-business income are required to perform calculations to determine the value of recoverable VAT - known as Partial Exemption and Business/Non-Business (B/NB) respectively. Whilst you can work these out quarterly, it’s also permissible (for most) to do these annually. However whichever is chosen, an annual adjustment will be required.

Unless you have a special period agreed with HMRC, the "VAT Year" runs to March, April or May depending on the VAT stagger.  The annual adjustment is required on or before the following quarter – I.e. that ending June/July/August.

Any annual adjustments for the June stagger should have been declared on the recent VAT return – which was due for submission last week.  Those with a July or August stagger will have their adjustments coming up on the next submission.

We have a great deal of experience in this area. So, if you need any assistance with this on your next return, or are indeed late having missed the last one, then please reach out and get in touch.