VAT Cases

Summaries of interesting VAT cases for the SME owner.

In Claims Advisory Group Ltd  v HMRC [2019] TC07308 the First tier tribunal decided that a company engaged in recovering personal protection insurance (PPI) was not itself making an exempt supply of insurance services.

In Mr Kamraan Hussain v HMRC [2019] TC 7325, the First tier tribunal upheld a director’s personal liability notice (PLN) for inaccuracy penalties for two VAT quarters but cancelled it for a third period.

In Barry John Graham v HMRC [2019] TC7313, the First Tier tribunal agreed that a sole trader had done enough to establish that three cars were not “made available for private use” and could claim input tax on their purchase.

Following a consultation HMRC have published ‘Revenue and Customs Brief 6: Changes in accounting for VAT after prices are altered’ to explain new rules for adjustments to VAT after changes in the price of goods or services.

In Skin Rich Ltd v HMRC [2019] TC7310 the First Tier tribunal ruled that neither injectable Botox treatment nor nail fungus treatment came within the scope of VAT exempt medical care.

In Faux Properties (A Partnership) v HMRC [2019] TC7051 a partnership's failure to adjust their VAT return to declare VAT received on the sale of an opted property resulted in a penalty for carelessness.

In Marks and Spencers PLC v The Commissioners for HM Revenue and Customs: [2019] UKUT 0182 (TCC), the Upper Tribunal decided that free wine, supplied in a dine for two £10 with free wine offer was a standard rated supply and the £10 should be apportioned to the supply of both wine and food.