As some of you will be aware, there are currently significant delays in HMRC processing forms in relation to VAT Group Registrations. It seems they are currently dealing with forms submitted last summer.
HMRC has released some guidance as to what to do in relation to VAT reporting if you are waiting for forms to be processed.
Further to my notes last month on the VAT treatment of charging electric vehicles, on 6 January 2022, HMRC updated its guidance in VAT Notice 700/64 – Motoring expenses.
The update added guidance on the recovery of input tax on the costs of charging electric vehicles.
On the same day, HMRC published Revenue & Customs Brief 1/2022 announcing that it was reviewing the options for recovering input tax on the costs of charging electric vehicles that was given in Revenue & Customs Brief 7/2021 after receiving representations concerning the limited options in that Revenue & Customs Brief.
The review is looking at the recovery of input tax where an employee charges an electric vehicle at home and claims for the cost from their employer. The current guidance says this input tax is unrecoverable as the supply is made to the employee.
HMRC has published some responses to what they consider are inaccurate media claims.
One of those is that “customer” service levels have been impacted by staff working from home. HMRC reassures us that there has been no impact as a result of home working during the pandemic and that, in face, service levels have improved.
I am not 100% certain how this is reflected in the 7 month waiting time for changes to current group registrations, the 5 months delay on options to tax, and the 5 months turnaround for error correction claims, which is what my clients are currently experiencing.