HMRC have published 'Revenue and Customs Brief 3 (2024): VAT on cladding remediation work' which clarifies HMRC's policy on the recovery of VAT incurred on cladding remediation works which are carried out on existing residential buildings.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Colchester Institute Corporation (CIC) v HMRC [2024] UT397, the Upper Tribunal (UT) found that government funding provided to a college constitutes an economic activity for VAT purposes. In this unusual case, HMRC agreed that their appeal should be dismissed but reserved the right to appeal to the Court of Appeal, maintaining that the decision in CIC v HMRC [2020] UKUT 0368 was incorrect. 
HM Treasury has published a response to its technical consultation on VAT and private school fees, that ran until 15 September 2024. Several technical amendments to the draft legislation will be made, with several new exemptions from the policy being introduced.
In Abbeyford Caravan Company (Scotland) Ltd v HMRC [2024] TC09324, the First Tier Tribunal (FTT) found that a company could use a new and more accurate method of apportioning output VAT between sales of caravans and sales of their removable contents.
In Treasures of Brazil Limited v HMRC [2024] TC09325, the First Tier Tribunal (FTT) found that a company had a legitimate expectation that it wasn't required to collect VAT while HMRC processed its VAT registration.
In Sandra Krywald v HMRC [2024] TC09312, the First Tier Tribunal (FTT) found that a taxpayer had a reasonable excuse for the late submission of VAT returns. She took reasonable care to avoid the failings of her advisers and HMRC.
In Brian Lawton v HMRC [2024] TC09309, the First Tier Tribunal (FTT) found that a taxpayer could not make two DIY housebuilder VAT repayment claims where a barn conversion was undertaken in two parts.
- Four years to resolve Alternative Dispute Resolution agreement
- TalkTalk loses prompt payment discount VAT appeal
- Cross-border cooperation catches VAT second-hand margin fraud
- Badly drafted appeal defeats static caravan DIY builder
- Director notice: no debarring HMRC
- Hair loss treatment not zero-rated