On 25 August 2015, the UK HMRC published updated guidance for calculating partial exemptions in VAT returns - the VAT Partial Exemption Toolkit (dated July 2015). The guidance covers several aspects of claiming input tax when making both taxable and exempt supplies, including a checklist for VAT partial exemption, and explanations and methods of mitigating risks concerning:
- Recognition of the need for a partial exemption calculation;
- Attribution;
- Apportionment;
- The annual adjustment; and
- The…