HMRC have announced that they will be changing the functionality for agent authorisation for VAT. The change will impact copying across authorisations and will have effect from October 2023.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Philip Spani v HMRC [2023] TC08916, the First Tier Tribunal (FTT) found that a newly constructed cottage did not qualify for VAT recovery under the DIY Housebuilders scheme. Constraints imposed by the property’s planning permission meant it was built in furtherance of a business.
In Epem Limited v HMRC [2023] TC08865, the First Tier Tribunal (FTT) found that supplies made by a medical clinic were standard-rated for VAT. There was insufficient evidence to conclude to what extent exempt supplies may have been made.
In HMRC v Hotel La Tour Ltd [2023] UKUT 178, the Upper Tribunal (UT) agreed with the First Tier Tribunal (FTT) that Input VAT can be reclaimed on professional services fees incurred during a share sale, where the ultimate economic purpose was fundraising.
In Illuminate Skin Clinics Ltd v HMRC [2023] TC08846, the First Tier Tribunal (FTT) found that supplies of aesthetic, skincare and wellness treatments were standard rated for VAT as they did not constitute medical care.
HMRC have published 'Revenue and Customs Brief 6 (2023): VAT liability of digital publications — Supreme Court decision in News Corp and Ireland Ltd' which gives an update on the VAT treatment of supplies of digital newspapers and other digital publications before 1 May 2020.
In WWM Rose & Sons Ltd v HMRC [2022] TC08830, the First Tier Tribunal (FTT) dismissed an appeal against a VAT surcharge for late payment. An agreement to pay by direct debit payment did not change the statutory VAT due date. Time To Pay must be agreed before the due date.