HMRC has published an updated VAT Input Tax Toolkit effective from 1 June 2011. The update reflects a number of recent changes including the VAT treatment of assets used for business and non-business or private purposes and entertaining overseas customers.

By way of reminder, HMRC toolkits provide guidance on areas of error that are frequently seen in returns and sets out the steps that can be taken to reduce those errors. They are intended to aid with ensuring that returns are completed correctly, minimising errors, whilst also focusing on the areas of possible error that HMRC consider key. Use of the toolkits can also be used to demonstrate reasonable care in a penalty situation.

The Toolkits can be accessed at http://www.hmrc.gov.uk/agents/prereturn-support-agents.htm