In Andrew Quay Hull LLP v HMRC [2024] TC09291 the appellants' three-year battle against a VAT penalty assessment four years after an Alternative Dispute Resolution (ADR) agreement was finally resolved.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In TalkTalk Telecom Limited v HMRC [2024] UKUT 00284, the Upper Tribunal (UT) found that supplies were not made on terms allowing a discount for prompt payment. VAT was chargeable on the invoiced amount.
In Ancient & Modern Jewellers Limited & Anor v HMRC [2024] TC9270, HMRC worked with the assistance of foreign tax authorities to assess £8.5m in VAT and penalties on a watch retailer. It used the VAT second-hand margin scheme to avoid tax on the sale of new imported watches.
Gregory Sewell v HMRC [2023] T9269 is a cautionary tale. A taxpayer's appeal against HMRC’s decision to refuse a VAT refund was not drafted in any way that allowed the FTT to review HMRC's decision. His lack of knowledge of the appeals process led to his appeal being denied.
In Jeneruhl Trading Limited and Vivek Nayar v HMRC [2024] TC09260, a company director was unsuccessful in an attempt to debar HMRC for pursuing him for his company's debts using a company officer liability notice. His company was partly successful on the case management issue of disclosure of HMRC information related to the timing of HMRC's assessments.
In Mark Glenn Ltd v HMRC [2024] TC09255, the First Tier Tribunal (FTT) found that the supply of a female hair loss treatment system could not be zero-rated for VAT purposes as hair loss was not a disability.
From 1 January 2025, all education services and vocational training supplied by a private school or a 'connected person', for a fee, will be subject to VAT at the standard rate of 20%. This also applies to boarding services closely related to this type of supply.
