UK Partial Exemption VAT
HMRC standard-method partial exemption: recovery %, de-minimis and annual adjustment worksheet
Businesses that make both taxable and exempt supplies must apportion input VAT under HMRC's standard method, one of the fiddliest corners of UK VAT usually wrangled in error-prone spreadsheets. This worksheet-driven calculator handles direct attribution, the residual recovery percentage rounded up the HMRC way, the two-limb de-minimis test and the annual adjustment that reconciles the year. Thresholds like the GBP 625 monthly limit and 50 percent ratio are settings, seeded to current HMRC figures, and a wizard can pre-fill from posted ledger data. It suits VAT managers, accountants in practice and finance teams in property, finance and charity sectors. Worksheet and format generation only, no filing to HMRC.
Key Features
Standard-method recovery percentage
The gb.pe.calculation model splits input VAT into taxable (T), exempt (E) and residual (R) and applies compute_recovery_percent: taxable / (taxable + exempt), rounded up to the next whole percent as HMRC requires when residual VAT is under the rounding limit. residual_recoverable then apportions the R pot.
Direct attribution lines with audit trail
When use_lines is on, gb.pe.calculation.line records each cost category with its input VAT and an attribution of taxable, exempt or residual. _rollup_lines sums them into the headline T/E/R figures on create, write and unlink, giving a defensible per-cost trail rather than three typed-in numbers.
Full de-minimis test
Each calculation runs both de-minimis limbs: the exempt input VAT monthly average against the GBP 625 limit and the 50 percent of total input VAT ratio. deminimis_passes and deminimis_test_detail show PASS or FAIL per limb, and when passed all input VAT including exempt becomes recoverable.
Annual adjustment worksheet
The gb.pe.annual model aggregates a year's period calculations, recomputes the annual recovery percentage and de-minimis position, and produces the adjustment field: positive means reclaim more, negative means repay HMRC. action_pull_periods attaches every unassigned period calculation in the year automatically.
Import figures from posted ledger
The gb.pe.import.wizard pre-fills a calculation from posted journal items: it sums the tax-base of sale invoices under the taxable and exempt tax codes you map and totals purchase input VAT over the period via _read_group, creating a computed calculation as a starting point you then refine.
Configurable HMRC thresholds
gb.pe.settings holds per-company parameters: the de-minimis monthly limit (GBP 625), the 50 percent total-input ratio, the rounding residual limit and the tax-year-end month (March default). get_for_company auto-creates settings, and figures recompute when thresholds change as HMRC rules evolve.
Printable worksheet output
get_worksheet_text builds a plain-text HMRC-style standard-method worksheet listing the T/E/R inputs, supplies, recovery percentage, residual recoverable and the de-minimis detail. action_print_worksheet computes if needed and posts it to the chatter, giving an inspector-ready record.
Use Cases
Screenshots
Annual Adjustments
Pe Calculations
Import From Ledger
Pe Settings
Why Choose This Module
Businesses that make both taxable and exempt supplies must apportion input VAT under HMRC's standard method — one of the fiddliest corners of UK VAT, usually wrangled in spreadsheets. This worksheet-driven calculator handles direct attribution, the residual recovery percentage, the de-minimis tests and the annual adjustment, with all thresholds configurable and seeded to current HMRC figures. Worksheet/format generation only — no filing to HMRC.
Specifications
- Compatible: Odoo 18.0 / 19.0
- License: OPL-1
- Languages: English
- Author: Pokutsoft
- Dependencies: account
- Support: support@pokutsoft.com
Update date: 2026-07-02