Andrew Needham explains how if a business forgets to tell HMRC that it has opted to tax a property it can submit a ‘belated notification’.
In order to recover the VAT on the costs of purchasing or refurbishing a commercial property, a property rental business will have to opt to tax the property and complete a form VAT 1614A and send it HMRC within 30 days of taking the decision to opt to tax. It would then charge VAT on any subsequent rental or sale of the property.
Forgetting to tell HMRC
It is not uncommon for a business to fail to notify HMRC of its decision within the 30-day limit. A common reason for failure to notify the option to tax is where a business purchases a property on which the vendor has opted to tax and assumes that the option carries over to them; or it may be because they simply didn
