Summaries of interesting VAT cases for the SME owner.
In United Carpets (Franchisor) Limited v HMRC [2025] TC09596, the First Tier Tribunal (FTT) found that flooring fitting services made by independent self-employed fitters were not part of a single supply of goods and services made by the appellant who supplied the flooring materials.
In Airline Placement Limited v HMRC [2025] TC09595, the First Tier Tribunal (FTT) found that 'security bonds' paid by trainee pilots (cadets) were consideration for the supply of a taxable service to the cadets.
HMRC have published 'Revenue and Customs Brief 4 (2025): VAT on the management of pension funds', which announces a further change to HMRC's policy on the recovery of VAT incurred on the management of pension funds.
Following the Upper Tribunal decision in Yorkshire Agricultural Society v HMRC [2025] UKUT 00004, HMRC have published 'Revenue & Customs Brief 3 (2025): VAT treatment of income received from charity fundraising events'.
In Solent Pathway Campus Limited v HMRC [2025] TC09536, the First Tier Tribunal (FTT) found that a joint venture between Solent University and a third-party course provider qualified for VAT exemption as an ‘eligible body’.
In Rushby Dance and Fitness Centre & Ors v HMRC [2025] TC09534, the First Tier Tribunal (FTT) found that private tuition in various styles of dance was standard-rated for VAT because the tuition was not in a subject ordinarily taught in a school or university.
In Walkers Snack Foods Limited v HMRC [2025] UKUT00155, the Upper Tribunal (UT) found that the First Tier Tribunal (FTT) had not erred in law when it found Walkers ‘Sensations Poppadoms’ were standard-rated for VAT. They were made from potato and potato starch and were similar to potato crisps.
