In Golden Cube Limited v HMRC [2018] TC06666, HMRC's observations of sales made by a Subway franchise over a three day period failed to provide sufficient evidence to raise an assessment for undeclared takings: HMRC had ignored the evening and weekend trading.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Roman Catholic Diocese of Westminster v HMRC [2018] TC06692, the First-Tier Tribunal (FTT) concluded that a new hall built at a church was an annexe that could function independently and the costs could be zero-rated.
In A N Checker Heating & Service Engineers v HMRC [2018] UKUT 292, the Upper Tribunal (UT) found that a single supply cannot be artificially split to allow reduced rate to apply to one component of that supply.
In BPP University College of Professional Studies Limited v HMRC [2018] TC06632¸ the First-Tier Tribunal (FTT) found that printed materials was a separate zero-rated supply to tuition courses provided by another group company.
In Rowhildon Ltd v HMRC [2018] TC06669¸the First-Tier Tribunal (FTT) decided that HMRC were unreasonable to refuse a belated notification of an option to tax, as there was sufficient evidence of the positive decision to opt.
In Taylor Wimpey PLC v HMRC [2018] UKUT 55, the Upper Tribunal (UT) concluded that the majority of the kitchen goods included in houses sold were subject to the ‘Builder’s block’ on recoverable VAT.
HMRC has published updated guidance on the VAT exemption for domestic service charges which has been erroneously relied on by some landlords and property management companies.