In Christopher Swales v HMRC [2019] TC07116, the First Tier Tribunal (FTT) allowed a VAT DIY Builder's Scheme refund. HMRC had refused the claim on the grounds that the building did not strictly comply with the approved planning application.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
Schedule 18 FA 2019 extends VAT Grouping to individuals and partnerships (including Scottish partnerships) that control the other bodies in a VAT Group, with effect from 1 November 2019.
In Lunar Missions Ltd v HMRC [2019] UKUT 0298 (TCC), crowdfunding with the offer of a reward to those who made pledges, triggered VAT registration: there was a supply for VAT purposes.
In Babylon Farm Ltd v HMRC [2019] TC7356 a company that produced hay and maintained outbuildings on its owners' land was not found to be running a business for VAT and a £19k input VAT claim was disallowed.
In Koolmove Limited v HMRC [2019] TC 7305, the First tier tribunal allowed a limited company to claim back input tax on legal fees personally incurred by the director to allow the company to be established.
In Field Opportunities Ltd v HMRC [2019] TC 7326, the First Tier Tribunal (FTT) held that a trader should have realised that transactions were probably connected with fraud. As a result they disallowed a VAT input tax of more than £240,000.
In the Great Escape Game Limited v HMRC [2019] TC7375 the costs of the purchase and installation of themed escape rooms were found to be capital expenditure for the purposes of the VAT Flat Rate scheme.