HMRC campaign targets fuel & power companies
HMRC have recently written to a number of companies which supply fuel and power, to address a possible risk of incorrect VAT treatment of these supplies.
The letters form part of a HMRC 'One to Many' campaign and have been sent to companies which are suspected of not aggregating fuel and power supplies before applying the VAT de minimis limit test.
Recipients are asked to :
- review their billing and accounting systems for compliance with the rules in VAT Notice 701/19;
- correct any previous errors in the past four years; and
- update HMRC on their actions.
The letters are being sent to Large Businesses and Mid-sized Businesses, but differ slightly between these populations. We are sharing the letters as we understand they will not be copied to agents.
Large Businesses are being sent a copy of the letter by their Customer Compliance Managers. The letter sent to Mid-sized Businesses contains the same key messages but also sets out protocols for corresponding with HMRC by email.