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HMRC internal manual

VAT Partial Exemption Guidance

From
HM Revenue & Customs
Updated
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Partial Exemption methods: longer period adjustment: the tax year, registration period and deregistration period

Tax year

Every business has a tax year, which is the twelve months ending on 31 March, 30 April or 31 May according to his stagger.

Registration period

A newly registered business has a registration period. This begins on the effective date of registration and ends on the following 31 March, 30 April or 31 May (according to the stagger) i.e. the day before his first tax year starts.

Deregistration period

A deregistering business has a deregistration period that begins at the start of a tax year as normal but ends on the date that he deregisters if that is in the middle of a tax year.

Regulation 99(1)(d) and (e) defines “tax year” and “registration period” for these purposes:

“(d) the “tax year” of a taxable person means - 

(i) the first period of 12 calendar months commencing on the first day of April, May or June, according to the prescribed accounting periods allocated to him, next following his effective date of registration determined in accordance with Schedule 1 to the Act, or

(ii) any subsequent period of 12 calendar months commencing on the day following the end of his first, or any subsequent, tax year,

save that the Commissioners may approve or direct that a tax year shall be a period of other than 12 calendar months or that it shall commence on a date other than that determined in accordance with paragraph (i) or (ii) above; 

(e) the “registration period” of a taxable person means the period commencing on his effective date of registration determined in accordance with Schedule 1 to the Act and ending on the day before the commencement of his first tax year.”