VAT option to tax time limit extended

23rd June 2020

UPDATED FOR HMRC GUIDANCE ON 23 June 2020

The option to tax time limit is extended from 30 to 90 days for decisions made between 15 February and 31 October 2020.

HMRC has extended the time limit due to the Coronavirus.

A taxpayer can decide to tax land and buildings for VAT purposes and would normally have to notify HMRC within 30 days of that decision.

Such notifying is either by 

  • printing and sending HMRC the notification, signed by an authorised person within the business; or
  • emailing a scanned copy of the signed notification

Social distancing in response to coronavirus has made these rules challenging to follow, so the rules have been relaxed to help businesses and agents.

You can use form VAT1614A to tell HMRC of an option to tax land or buildings.

If you are notifying an option as a business

You can submit the form with an electronic signature, but HMRC requires evidence that the signature is from a person authorised to make the option on behalf of the business.

Examples of supplementary evidence include emailing the form:

  • with an email from the authorised signatory to the sender within the business, giving authority to use the electronic signature
  • from the authorised signatory with their sign off in the email and the form
  • with an email chain or a scan of correspondence showing the authority given by an authorised signatory

Or Bishop Fleming can do this on your behalf.

Option to tax notifications can be emailed to HMRC at: optiontotaxnationalunit@hmrc.gov.uk.

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