UK Tax Office to Formalize Final VAT Deadline Extension Power

The UK tax authority is seeking to formalize its ability to extend the deadline for a company to submit its final value-added tax return upon the business canceling its registration.

His Majesty’s Revenue and Customs proposed a measure Wednesday providing legislative basis for its common administrative practice of extending the final deadline, mainly in scenarios where delays in processing and compliance activities hinder or obstruct businesses from meeting it.

HMRC expects the new rule to be laid in Parliament in May, with an effective date of June 13.

• By rule, businesses canceling VAT registrations must submit their final return within ...