VAT Cases

Summaries of interesting VAT cases for the SME owner.

In Anthony Leach v HMRC [2019] TC 7180, the first tier tribunal found that a trader’s excessive claims for VAT refund of VAT was as a result of “deliberate and concealed” behaviour. The consequence is that HMRC can claim tax for the previous 20 years rather than four, and that the highest rates of penalty apply.

In JCA Seminars Ltd v HMRC [2019] TC 6964, the FTT found that HMRC is not obliged to tell a taxpayer that she is using the wrong flat rate of VAT. Also a payment to HMRC is made when received by them, not when posted to the correct VAT number.

In the Royal Opera House Covent Garden Foundation v HMRC [2019] TC7157 the FTT made a helpful analysis as to when taxable supplies can be directly associated with production costs for the purposes partial exemption allocation of residual input tax

In Peter Hartigan T/A Striking Iron Ltd [2019] TC7109 a trader who claimed to misunderstand the VAT registration rules received a £30,000 penalty for his failure to notify.

In Cheshire Centre for Independent Living v HMRC TC7182 the FTT found that a supply of payroll services to disabled people was so closely linked to the provision of welfare services that payroll charges were VAT exempt.

In Glasgow School of Art v HMRC [2019] UKUT 0173 the Upper Tribunal held that construction of a new building and rebuilding of another were effectively treated at one building and a single supply for VAT.

In National Car Parks v HMRC [2019] EWCA Civ 854 the Court of Appeal found that when a customer overpays a car parking fee, and the operator does not give change the whole fee paid is subject to VAT.