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HMRC internal manual

VAT Government and Public Bodies

Section 33 bodies: calculations: implementation of agreed methods

A section 33 body who wishes to use any recovery method other than the standard method (see VATGPB4520) must normally obtain HMRC agreement before the start of the year in which it is to be used. However, a modified time scale may be adopted as follows with:

  • a method agreed in principle for the start of the tax year, which may be in broad terms with details of the full method to be agreed later
  • the section 33 body required to submit detailed proposals in writing to HMRC no later than three months before the end of the tax year, and
  • any discussions to be concluded and the final method agreed in writing by the end of the tax year.

If the method cannot be agreed before the end of the tax year, its adoption must be postponed until the beginning of the next. In the meantime the standard method should be used.