Reasons to choose Wilson Browne
HMRC has updated its guidance on notifying it of a decision to exercise the option to tax (option) during the 2019 novel coronavirus disease (COVID-19) pandemic and its general guidance on how to notify it of a decision to exercise the option (using form VAT1614A).
On 14 May 2020, HMRC had announced that the deadline for notifying it of a decision to exercise the option had been temporarily extended to 90 days (rather than the usual 30 days) from the date on which the decision was made. The extended time limit was stated to apply if the decision was made between 15 February 2020 and 31 May 2020.
Under the updated guidance, the extended deadline for notification applies to decisions made between 15 February 2020 and 30 June 2020.
Please note that you should always seek advice form your accountant or specialist tax advisor before making any decisions about opting to tax or otherwise.