PE45000 - Consideration of Partial Exemption (PE) special methods: 바카라 사이트˜Provisional바카라 사이트™ methods
Where businesses are uncertain as to the mix of supplies they will make, they may sometimes request a 바카라 사이트˜provisional바카라 사이트™ method. However, legally the business must either use the standard method or an alternative method approved or directed by the Commissioners. Accordingly, there is no such thing as a provisional method. Any approved special method is the method approved for the business unless a later method is subsequently approved which operates retrospectively to cover the period in question.
If the method approved does not produce a fair and reasonable recovery of input tax once the mix of supplies is known, then the business or HMRC may serve a special method override notice (SMON) to correct the position.
바카라 사이트˜Provisional바카라 사이트™ recovery rates in a permanent method
The use of provisional recovery percentages in approved special methods is not precluded. Usually this takes the form of using the previous year바카라 사이트™s recovery rate to provisionally attribute the input tax until the actual recovery rate is determined in the annual adjustment. This is acceptable, since there is a mechanism approved in advance to resolve how the provisional recovery rate will be translated into an actual recovery rate.