Many businesses that make both taxable and exempt supplies recover less VAT than they should. A rigorous specialist partial exemption review is a proven way to for finance departments identify opportunities to improve VAT recovery, correct historic underclaims and ensure that your tax methodology reflects your current business activities.
Our consultants work with large and complex organisations to uncover VAT recovery opportunities that are often missed during standard compliance processes.
About The Proactive Consultancy Group’s Partial Exemption Review Service
Partial exemption rules significantly affect the amount of VAT a business can recover. As organisations evolve through growth, acquisitions, restructuring, or make operational changes to take advantage of new income streams, existing VAT recovery methods may no longer produce the most beneficial results.
A partial exemption review asks:
- Are current VAT recovery methods still appropriate?
- Could alternative methods improve VAT recovery?
- Is there any historic underclaimed VAT?
- Have all available reliefs, special methods or adjustments been fully utilised?
- Do existing processes align with HMRC requirements?
Our objective in performing a partial exemption review is simple: maximise your company’s legitimate VAT recovery while maintaining a robust and defensible position.
Our Partial Exemption Review Process
When carrying out a partial exemption review, our VAT specialists assess:
- Existing partial exemption methodologies
- Recovery percentages and calculations
- Special methods and HMRC agreements
- Changes in business activities
- Opportunities to improve VAT recovery
Indirect tax is The Proactive Consultancy Group’s speciality. So our advisers are immersed in VAT matters every day. We have up-to-date knowledge of the latest regulation changes, and the experience to apply them judiciously in a commercial setting.
What Is the Expected Outcome of a Partial Exemption Review?
Our advisers aim to give your organisation greater confidence that your recovery method is accurate and delivers maximum legitimate VAT recovery.
Assess the VAT recovery opportunities in your organisation. Book a consultation with The Proactive Consultancy Group.
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Our Five-step Partial Exemption Review Process
1. Partial Exemption Review Assessment
Our advisers perform a high-level review of your business activities, VAT profile and partial exemption position.
This initial assessment helps us determine whether a deeper review is likely to identify a worthwhile opportunity.
What we review:
- Business structure
- VAT registration arrangements
- Taxable and exempt income streams
- Recovery methodology
- Historic data
2. Partial Exemption Review Case Validation
Our VAT specialists conduct a detailed technical analysis. This is to establish whether there is in fact a claim opportunity. At this stage, we can also estimate its potential value to your business.
We will only ever recommend proceeding with a partial exemption review where we believe there is a realistic prospect of delivering a beneficial outcome.
This stage includes:
- Technical VAT assessment
- Historic data analysis
- Opportunity quantification
- Risk evaluation
- HMRC position review
3. Engaging our Partial Exemption Review Services
Once the opportunity has been validated, we agree the scope of work and proceed on a success-based fee arrangement.
We do not charge any fees until we achieve a successful outcome, so engaging The Proactive Consultancy Group is a low-risk way of bringing in external professional expertise.
This approach aligns our interests with yours and ensures complete transparency from the outset.
4. Delivery of the Partial Exemption Review
Our team of experienced VAT advisers manages the review process from start to finish.
We prepare the technical rationale, support calculations and documentation that is needed to substantiate the claim. We can also engage with relevant stakeholders where necessary.
Our support includes:
- Detailed calculations
- Technical VAT analysis
- Claim preparation
- Documentation and evidence gathering
- HMRC support and correspondence assistance
5. Fee Only on Success
Our fees are contingent upon a successful outcome.
If we do not identify and deliver recoverable value, you do not pay our fee.
This provides a low-risk route to exploring opportunities that may already exist within your VAT position.
Suitability Criteria for a Partial Exemption Review
Our partial exemption review service is designed for organisations where the potential VAT opportunity justifies detailed specialist analysis.
Typically Suitable Organisations
We work with high-value businesses and organisations operating in sectors where partial exemption issues commonly arise, including:
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Our Partial Exemption Review is Most Likely to Add Value When…
We find that clients who gain most from our partial exemption reviews share some characteristics. These are:
- The organisation has significant annual VAT expenditure.
- The organisation makes both taxable and exempt supplies.
- The organisation has experienced growth, acquisition or restructuring.
- The organisation has not undertaken a specialist review in recent years.
- The organisation operates a complex VAT recovery method.
We would be pleased to hear from directors of tax or finance leads who believe their business’s VAT recovery levels may not fully reflect current activities.
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Why Choose The Proactive Consultancy Group’s Partial Exemption Review?
Engaging our service allows you to benefit from a comprehensive and expertly handled partial exemption review with minimal disruption to internal teams who may already be stretched by day-to-day operations.
Our clear, evidence-backed recommendations can be used to inform strategy and create tactics that will realise financial gains for your business.
We are well placed to assist high-value commercial organisations with partial exemption review because:
- We have specialist indirect tax expertise.
- Our advisers have extensive experience with complex partial exemption matters.
- We have a commercially focused approach.
Another good reason to engage us is our success-based fee structure, which minimises the risk to your cash flow.
Ready to Explore Your VAT Recovery Potential?
A brief initial assessment with The Proactive Consultancy Group can quickly establish whether our partial exemption review is likely to deliver value to your organisation.