Recently published Revenue & Customs Briefs – December 2013

Revenue & Customs Briefs

VAT: withdrawal of partial exemption concession in relation to Road Fuel Scale Charges (RFSCs) – reminder of withdrawal and need to consider action

HMRC has published Revenue & Customs Brief 33/13: VAT: withdrawal of partial exemption concession in relation to Road Fuel Scale Charges (RFSCs) – reminder of withdrawal and need to consider action. HMRC says that the purpose of this Revenue & Customs Brief is

“to remind taxpayers that the partial exemption concession on Road Fuel Scale Charges (RFSCs) will be withdrawn with effect from 1 January 2014. Taxpayers who currently use the concession need to take action if they are to continue to achieve a fair result following withdrawal.”

It has been suggested on the Forum that this Revenue & Customs Brief announces the withdrawal of a concession with another. The announcement confirms that from 1 January 2014 HMRC will require partly exempt businesses to account for output tax on the fuel scale charge in full, and apply a calculation to the input tax to determine how much can be recovered. Is this is concession? Add your comments to the point on the [Forum][forum1].

In reviewing this point I noticed this paragraph after the example of the suggested formula towards the end of the Revenue & Customs Brief:

If as a result of the withdrawal of this concession or for any other reason businesses do consider that their current Partial Exemption Method will not give a fair and reasonable recovery of input tax they should contact HMRC requesting a new method. Until formal approval is granted businesses should not adopt this formula or make any other change to their partial exemption calculation method.

This seems to hark back to the days before the Special Method Declaration and therefore misleading.

Reverse charge accounting for businesses trading in mobile telephones, computer chips and emissions allowances: continuation of current treatment

HMRC has published Revenue & Customs Brief 36/13: Reverse charge accounting for businesses trading in mobile telephones, computer chips and emissions allowances: continuation of current treatment. The measures will now run until the end of 2018.

Intrastat – changes from 1 January 2014

HMRC has published Revenue & Customs Brief 38/13: Intrastat – changes from 1 January 2014. This Revenue & Customs Brief announces changes to Intrastat thresholds from 1 January 2014:

  • the exemption threshold for arrivals is increased from £600,000 to £1,200,000
  • the Delivery Terms threshold is increased from £16 million to £24 million
  • the exemption threshold for dispatches (EU exports) remains unchanged at £250,000.

If you have any questions on these items leave a comment below.

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