HMRC have updated VAT Notice 742AOpting to tax land and buildings. The Notice now reflects current practice that HMRC no longer sends an acknowledgement letter on receipt of an option to tax. Where notification of an option to tax is sent by email, businesses will receive an automated response from HMRC which should be retained. Notifications sent in by post will not be acknowledged. The Notice confirms that the option to tax will have legal effect even without acknowledgement of receipt and that businesses should charge VAT from the effective date of the option to tax. This is covered in section 4 of the Notice which, perhaps surprisingly, does not also advise businesses making postal notifications to retain evidence of submission (eg a proof of posting certificate). The list of persons authorised to sign a notification has also been updated.
HMRC have updated VAT Notice 742AOpting to tax land and buildings. The Notice now reflects current practice that HMRC no longer sends an acknowledgement letter on receipt of an option to tax. Where notification of an option to tax is sent by email, businesses will receive an automated response from HMRC which should be retained. Notifications sent in by post will not be acknowledged. The Notice confirms that the option to tax will have legal effect even without acknowledgement of receipt and that businesses should charge VAT from the effective date of the option to tax. This is covered in section 4 of the Notice which, perhaps surprisingly, does not also advise businesses making postal notifications to retain evidence of submission (eg a proof of posting certificate). The list of persons authorised to sign a notification has also been updated.
