On 21 and 22 September 2016, HMRC published updated guidance on its approach to applications for retrospective VAT group treatment.
HMRC’s guidance about the extent to which VAT applications can be given retrospective effect in “ordinary” circumstances has not changed. The revised guidance does however provide some further examples of “exceptional” cases. Two examples given, refer to circumstances where HMRC has made an error and a general direction that HMRC do not automatically reject applications where there may be exceptional circumstances. In such circumstances, the HMRC officer should seek technical advice.
The revised guidance can be found here