Partial exemption has long been one of the most difficult areas of VAT to understand and apply correctly and efficiently. The course is designed to explain the basic principles of partial exemption and give delegates a clear understanding of how it applies to their business. It is also intended to provide the tools for identifying the optimum apportionment method.
At the end of the course, delegates will have a better appreciation of legislation and a heightened awareness of VAT-saving possibilities. Junior staff will become familiar with the right questions to ask, and senior staff will have clear guidance towards making key, strategic decisions.
An introduction to the basic principles of partial exemption, including UK legislation, EU legislation (and any differences between the two) and an explanation of HMRC policy and guidance
Direct attribution and the use of goods and services received: this is one of the most important stages in determining how much input VAT can be reclaimed
The operation, advantages and pitfalls of the standard method of apportionment – this is the method that must be used in the absence of any written agreement with HMRC to the contrary
Special methods – any method, which is the slightest variation to the standard method, is a special method, requiring prior written approval from HMRC. This session will examine different types of special method and how they work
Other aspects, problems and pitfalls of VAT and partial exemption itself, which do not relate to the apportionment of input tax
The capital goods scheme, which requires the apportionment of input tax on specific capital items and subsequent annual adjustments over the usual life of the asset.
WHO SHOULD ATTEND
The course is ideal for anybody who is directly or indirectly involved with VAT in businesses or organisations that are partly exempt, such as financial institutions, educational establishments, charities, health and welfare organisations.
It would also be relevant for professional advisers of partly exempt businesses.