AFB Practice Workshop: How to Deal with Partial Exemption Special Methods for VAT

This interactive practice workshop, in partnership with BDO, will run through two case studies exploring the utilisation of the partial exemption special method (PESM). Members will have the opportunity to undertake a high-level review, discuss typical methodologies, explore potential pitfalls, consider how to make changes to a PESM and the areas of focus by HMRC when undertaking periodic VAT reviews and inspections.

Why attend?

The workshop will explore:

• identifying when a PESM is needed or needs refreshing  
• how to perform a basic modelling exercise to identify a special method
• the key things to consider when negotiating a PESM with HMRC
• recent changes in the approach HMRC are taking with regard to the agreement of an initial PESM
• concepts of VAT grouping, fixed establishment, reverse charge/anti avoidance provisions (bought in supplies) and single/multiple supplies

Who should attend?

The session will be of interest to representatives from the finance, compliance, and internal audit functions.

Speakers

The session will be hosted by VAT specialists from BDO who specialise in advising clients in the financial services sector (particularly, foreign banks). Your hosts include:

• Stephen Kehoe – BDO’s Head of Indirect Tax, VAT, Partner (Financial Services)
• Aditi Hyett – BDO’s Head of Financial Services VAT, Partner
• Shane Risdell – VAT Director, Financial Services
• Syeed Reza – VAT Associate Director, Financial Services
• Royce Adcock – VAT Manager, Financial Services

BDO has a long-standing dedicated VAT team which specialises in advising clients in the financial services sector.  This includes banks, fintechs, asset managers, crypto, private equity houses and insurance businesses.  As part of their role, the team has advised clients on a range of various matters – this includes advising on the scope of exemption, VAT recoveries and cross border transactions.   The team has in-depth experience in negotiating partial exemption specials methods with HMRC and have unlocked significant VAT savings for businesses.   In addition, the team is experienced in resolving contentious VAT matters with HMRC through means of Alternative Dispute Resolution (ADR) and where necessary, litigation.

Logistics

Format:   In-person at BDO, 55 Baker Street, London, W1U 7EU

Cost:        £265.00 + VAT

Date:       Tuesday 15 July 2025

Time:       08:30 – 11:00 (Registration and breakfast from 08:30-08:50)

Places:     Maximum of 30 people

If you would like to submit a question or have any specific areas that you would like the session to address, please send them to the AFB Secretariat. You will receive final event details one week before the event.

BDO will deliver this workshop on a complimentary basis. The delegate fees received for this course are invested in the ongoing running and administration of AFB.