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Revenue & Customs Brief 10/10 announces two changes referred to as the simplified tests and the annual test to simplify the partial exemption de minimis rules that take effect from 1 April.
The simplified tests mean that some businesses will no longer have to carry out a full partial exemption calculation to confirm their de minimis status.
If in a VAT period a business passes either of two tests it may treat itself as de minimis and provisionally recover input tax relating to exempt supplies.
The business is still required to review its de minimis status at the end of the year as before and account for any under or overpaid input tax as part of its annual adjustment.
The annual test gives most businesses the option of applying the de minimis test once a year instead of four or...
