In Peter Hartigan T/A Striking Iron Ltd [2019] TC7109 a trader who claimed to misunderstand the VAT registration rules received a £30,000 penalty for his failure to notify.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In National Car Parks v HMRC [2019] EWCA Civ 854 the Court of Appeal found that when a customer overpays a car parking fee, and the operator does not give change the whole fee paid is subject to VAT.
In Fortyseven Park Ltd v HMRC [2019] EWCA Civ 849 the Court of Appeal has ruled that the sale of a fractional interest in a residential property was subject to VAT. The integral supply of concierge services was not the passive supply of a property landlord but more similar to that of a hotel.
In The Ice Rink Company Ltd and PI (Milton Keynes) Ltd [2019] UKUT 0108 the UT found that the FTT had made an error of law, when it decided that a “skate hire and admission” package sold as a package were two separate supplies as opposed to a single standard-rated supply and the skate hire supply element of the package could be treated as zero-rated if supplied to children. The case has been remitted to FTT for reconsideration.
In Stanley John Chmiel v HMRC [2018] TC7112 a company director’s failure to register his company for VAT resulted in a £4,250 penalty via a Personal Liability Notice. HMRC’s powers sometimes allow it to ‘pierce the corporate veil’.
In Owen Francis Saunders v HMRC [2019] TC6992 compensation paid under the Proceeds of Crime Act for shoddy workmanship cancelled out the underlying supply for VAT purposes: effectively there was no supply of goods or services.
SAE Education v HMRC [2019] UKSC Supreme Court found that an independent and private body providing education for profit was integrated with a university that its education services could benefit from the education exemption in Group 6 Schedule 9 VATA 1994.