Partial Exemption VAT Advice
We help Cardiff businesses get their VAT partial exemption calculations right, so you recover every penny you're entitled to and stay on the right side of HMRC. Whether you're a charity, professional firm or mixed-activity business, we'll work out the best method for your circumstances and keep your records audit-ready.
What we cover under partial exemption
From initial status checks to ongoing calculations and special method applications, we handle every aspect of VAT partial exemption so you can focus on running your business.
Partial Exemption Status Review
We analyse your supplies to determine whether you're partially exempt and what that means for your VAT recovery.
Standard Method Calculations
We apply the standard apportionment method and test whether you meet the de-minimis thresholds for simplified recovery.
Special Method Applications
When the standard method doesn't reflect your actual input use, we prepare and submit special method requests to HMRC.
Ongoing Compliance Support
Regular reviews and accurate record-keeping to ensure your partial exemption calculations stay correct as your business changes.
How we make partial exemption straightforward
If your business makes both taxable and exempt supplies, you cannot recover all the VAT you pay on purchases. The rules around what you can and cannot reclaim are complicated, and getting them wrong can mean leaving money on the table or facing penalties from HMRC. We take the guesswork out of partial exemption by working through your activities, applying the right calculation method, and keeping your records up to scratch.
Most businesses start with the standard method, which uses the ratio of taxable supplies to total supplies. That works fine for some, but if your actual costs do not match that ratio, you could be missing out on legitimate recovery or accidentally overclaiming. We review your specific circumstances, run the numbers, and if a special method would serve you better, we handle the application process with HMRC.
We make sure you recover every penny you're entitled to, without overstepping the line.
More information
Partial exemption is particularly relevant for charities, professional practices, healthcare providers, and any business operating across multiple revenue streams. If your exempt supplies cross certain thresholds, you might lose the right to reclaim VAT altogether, so staying on top of the calculations is not just about compliance — it's about protecting your cash flow.
We also keep an eye on blocked input tax, the costs you can never recover regardless of how they are used, and make sure your apportionment method is fair and reasonable. HMRC can override a method if it produces results that do not reflect the real use of your inputs, so accuracy and documentation matter.
What is included
- Full review of your taxable and exempt supplies
- Calculation of recoverable input tax under the standard or special method
- De-minimis threshold testing to simplify recovery where possible
- Preparation and submission of special method applications to HMRC
- Ongoing monitoring as your business activities change
- Record-keeping support to keep you audit-ready
Our clients are based right across Cardiff and South Wales, from Newport to Swansea, and we work with businesses of all sizes. Whether you are a dental practice in Pontypridd, a professional services firm in the city centre, or a charity operating across multiple sites, we will make sure your VAT position is sound and your recovery is optimised.
If you are unsure whether partial exemption applies to you, or you have been using the standard method for years without reviewing it, now is a good time to check. The rules changed slightly in 2022, and HMRC now requires special method requests to go through official channels. We stay on top of the updates so you do not have to.
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Worth considering
Flat Rate VAT Scheme Advice
Understand whether the Flat Rate VAT Scheme will save you money. We compare it to standard VAT, confirm your sector rate, and set up smooth VAT returns.
Flat Rate VAT Scheme Advice→Making Tax Digital (MTD) for VAT
Stay compliant with Making Tax Digital for VAT. We set up your software or bridging, get your VAT records in order, and submit returns to HMRC on time.
Making Tax Digital (MTD) for VAT→VAT Returns
VAT Returns prepared and filed with HMRC, with checks on your sales and expenses, MTD-compliant submission, and clear summaries so you know exactly what is due.
VAT Returns→VAT Registration
We handle your HMRC VAT registration, confirm the right registration date, and help you pick a VAT scheme so you can invoice correctly and stay compliant from day one.
VAT Registration→Before you book
Here are the questions we hear most often from businesses dealing with partial exemption for the first time.
How do I know if my business is partially exempt?
What is the standard method and when does it apply?
What are the de-minimis limits?
When should I consider a special method?
How often do partial exemption calculations need to be done?
What records do I need to keep?
Can partial exemption rules change?
Do you work with businesses outside Cardiff?
Let's talk about your partial exemption
Book a free consultation and we'll review your VAT position, explain your options, and give you a clear quote with no obligation.
Book a free consultation