HMRC Updates Guidance on Acceptable Reasons for Late Input Tax Claims and VAT Recovery

• HMRC updated its guidance on late claims for input tax, providing examples of acceptable practical reasons for such claims.
• Acceptable reasons include due diligence processes and internal accounting controls that prevent timely recovery.
• HMRC will not allow late claims if there is evidence of carelessness or repeated late claims.
• Late claims must not result in greater input tax recovery than if claimed in the proper period and are subject to a four-year cap.
• Businesses should ensure claims are made in the correct period, as HMRC’s approach to late claims has become more stringent.

Source: saffery.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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