10 December 2020
HM Treasury issued a Call for Evidence last month in relation to VAT grouping. We have responded and recommended that the UK does not introduce compulsory VAT grouping.
The consultation asked for views on questions relating to three specific topics:
Our response focuses on the aspect of compulsory VAT grouping as it is this area that would have the most impact on our members if the proposed changes are introduced. We have recommended that the UK does not introduce compulsory VAT grouping for entities that fall within the scope of VATA 1994 s43 as it would create a number of negative impacts for housing associations:
At this stage it has only been possible to provide a high level response to the questions raised. For this reason, we have requested a meeting with HM Treasury to discuss this further and give us the opportunity to engage in order to demonstrate the impact on individual housing associations.