HMRC has published revised draft guidance relating to the new notification of uncertain tax treatment regime that will apply from April 2022. The guidance is considerably longer than the previous draft published in August 2021, and contains several new VAT-related examples. In particular, there is more information about how HMRC will decide whether a business has adopted a VAT treatment which conflicts with HMRC’s “known position”. The draft guidance also confirms that HMRC do not expect NUTT to have retroactive effect. Previously, some businesses (depending on their financial year end) might have needed to identify uncertainties arising in VAT returns submitted in 2021, when determining whether the £5m notification threshold had been exceeded.

If you have any questions or comments regarding the draft guidance, please contact: uncertaintaxtreatmentconsultation@hmrc.gov.uk

The rules will affect very few charities, as they only apply to organisations with a turnover (excluding voluntary income) of more than £200 million per annum and a balance sheet total over £2 billion.