What has changed?
It has been the practice of HMRC to send written acknowledgements when options to tax have been notified.
There was no legal requirement to issue these acknowledgements, and it has always been the case that if an option to tax has been properly notified to HMRC it is legally in place, with or without a written acknowledgement.
With effect from 1 February 2023, HMRC will stop sending written acknowledgements of options to tax.
What do I need to do now?
Under the new arrangements, notifications of options to tax should be submitted via email to HMRC. If you need to check what details are required from you for submission, please speak with our VAT team at M+A Partners who will be pleased to confirm this for you.
The automated response you get to this email will have the date HMRC received it. The notification and the HMRC receipt will provide the evidence that you have opted to tax. These must be retained as part of your VAT records.