HMRC published Call for evidence: simplification of partial exemption and the Capital Goods Scheme in July 2019.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
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 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.
In Anthony Leach v HMRC [2019] TC 7180, the first tier tribunal found that a trader’s excessive claims for refunds of VAT was as a result of “deliberate and concealed” behaviour. The consequence is that HMRC can claim tax for the previous 20 years rather than four, and that the highest rates of penalty apply.
In JCA Seminars Ltd v HMRC [2019] TC 6964, the FTT found that HMRC is not obliged to tell a taxpayer that she is using the wrong flat rate of VAT. Also a payment to HMRC is made when received by them, not when posted to the correct VAT number.
The ICAEW Tax Faculty has obtained clarification from HMRC on the availability of agent and business access to digital VAT services after a business has signed up to Making Tax Digital (MTD) for VAT. Copy your VAT certificate first!.
In Cheshire Centre for Independent Living v HMRC TC7182 the FTT found that a supply of payroll services to disabled people was so closely linked to the provision of welfare services that payroll charges were VAT exempt.