PAYE Monday
Nov022009
in
PAYE
PAYE Monday
Oct262009
VAT-Option to Tax
Monday, October 26, 2009 at 12:05PM It is coming up for 20 years since the option to tax for VAT purposes was introduced.The reasoning behind opting to tax was to recover input tax on property expenditure.The corollary was that VAT output tax is charged on the rent and the selling value of the property.
However at the expiry of the 20 year period a taxpayer can inform the HMRC that he wishes to withdraw from the scheme.Rather strangely there is then no VAT chargeable on the withdrawal from the scheme or on a subsequent sale.
There are other considerations that should be considered before deciding to withdraw.
