VAT Cases

Summaries of interesting VAT cases for the SME owner.

In Stanley John Chmiel v HMRC [2018] TC7112 a company director’s failure to register his company for VAT resulted in a £4,250 penalty via a Personal Liability Notice. HMRC’s powers sometimes allow it to ‘pierce the corporate veil’.

In Owen Francis Saunders v HMRC [2019] TC6992 compensation paid under the Proceeds of Crime Act for shoddy workmanship cancelled out the underlying supply for VAT purposes: effectively there was no supply of goods or services.

In Snow Factor Limited v HMRC [2019] UKUT0077 the Upper Tribunal ruled that the appellant was not required to pay the sum of disputed VAT ahead of an appeal to the UT as it would cause financial extremity.

In Roy Tabb v HMRC [2018] TC6870 a DIY Housebuilder successfully challenged HMRC's interpretation as to whether the demolition and rebuild of an annex resulted in a new dwelling or was merely an extension.

SAE Education v HMRC [2019] UKSC Supreme Court found that an independent and private body providing education for profit was integrated with a university that its education services could benefit from the education exemption in Group 6 Schedule 9 VATA 1994.

In Cube Construction (Southern) Ltd v HMRC [2019] TC07030, the FTT considered whether certain works to the roof, re-wiring, and doors of a listed building damaged by fire and rebuilt were alterations or repairs or incidental to repairs.

In David Cosham v HMRC [2018] TC6985 on the FTT considered whether electric blinds were “ordinarily incorporated” in a DIY Housebuilder's new eco house.