HMRC is currently undertaking an informal consultation with a number of industry bodies and trade associations in relation to three specific options for extending VAT grouping to certain non corporate entities. This follows a previous consultation on the UK’s VAT grouping rules launched in December 2016, from which the Government concluded that further work was required.
HMRC is now seeking views on extending the VAT grouping rules to certain partnership and sole trader arrangements. Those invited to participate had to submit their written responses to the consultation by 16 March 2018.
If the proposals are taken forward, HMRC is expected to publish draft legislation for further consultation later this year.
A copy of the letter inviting the Chartered Institution of Taxation to participate in the consultation is available to view here.