Stop Press: HMRC extends VAT and pension scheme costs transitional period for further 12 months
Published on 6th Sep 2016
We published a blog on 2 September to remind clients that the VAT transitional period was expiring at the end of 2016. Almost as if it read our blog and jolted into action, HMRC has now decided to extend the transitional period for a further 12 months in its Brief 14 (2016), published on 5 September. This means that taxpayers may continue to use the VAT treatment outlined in VAT Notice 700/17: Funded Pension Schemes until 31 December 2017.
In its new brief, HMRC note that its much anticipated guidance setting out possible options for recovery has been put on hold to allow HMRC to further consider the implications of the European judgments. HMRC will review the position towards the end of the new transitional period and consider the need for a further extension if necessary.
HMRC acknowledge that some taxpayers may have already made changes to their structure to comply with the European judgments. HMRC note that those who have made changes can either continue with their new arrangements or revert back to their previous arrangements during the transitional period.
