A leading chartered accountancy firm believe that farm and estate businesses should consider whether their annual VAT apportionment calculation remains fit for purpose.

Saffery Champness say that companies should not put off reviewing their VAT apportionment, but should address it on a regular basis.

Where too little VAT has been paid then more will be due, but in many cases VAT will have been overpaid, resulting in a tax refund.

David McGeachy, partner with Saffery Champness and head of VAT, said: "Where there may be doubt that the apportionment method used is giving a fair and reasonable picture of the deduction of input tax then it can and should quite legitimately be changed.

"HMRC’s written approval is required for this to happen or for a ‘special method’ of apportionment to be applied.

"Even where a ‘special method’ has been agreed in the past this too can be renegotiated with HMRC and a further ‘special method’ implemented.

"This is especially relevant and necessary where business circumstances have changed since the previous agreement with HMRC was put in place.

"So if in doing your VAT apportionment this year, you think that circumstances have changed or that you are not seeing the offset that you think should be due, take the trouble to renegotiate with HMRC.

"Even a minimal increase of 5 per cent per annum in what you can recoup will be worth pursuing, particularly when it accumulates over a number of years."