In the Royal Opera House Covent Garden Foundation v HMRC [2019] TC7157 the FTT made a helpful analysis as to when taxable supplies can be directly associated with production costs for the purposes partial exemption allocation of residual input tax. HMRC subsequently appealed this decision to the Upper Tribunal who decided that no direct links existed.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Glasgow School of Art v HMRC [2019] UKUT 0173 the Upper Tribunal held that construction of a new building and rebuilding of another were effectively treated at one building and a single supply for VAT.
It is important to keep a record of your actions in case you are later subject to some kind of fine or penalty for a compliance failure. After spending many days on trying to become compliant for Making Tax Digital for VAT I have decided to retain an online record of my efforts to be tax compliant.
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.
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.