In Wakefield College v HMRC [2018] EWCA Civ 952, the Court of Appeal decided that income from students who are partly subsidised and pay a small additional fee for courses, amounted to a business activity. This meant the construction of a new building could not be zero-rated.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Marks and Spencers plc v HMRC [2018] TC06471, the First-Tribunal (FTT) found that the free wine in the 'dine in for £10' offer is not a gift and part of the cost of the deal must be standard rated.
In HMRC v Summit Electrical Installations Limited [2018] UKUT 0176 (TCC), the Upper Tribunal (UT), dismissed HMRCs appeal, finding that student accommodation could still qualify as a dwelling despite planning restrictions on eligible tenants.
In Pegasus (Manchester) Limited v HMRC [2018] TC06382, the First-Tier Tribunal (FTT) found that a bain marie was used to keep food above ambient temperature meaning it was considered hot food.
In P Kaur v HMRC [2016] TC06210, the First-Tier Tribunal upheld HMRC’s penalties, finding that Ms Kaur was subject to VAT on her eBay business and had failed to notify HMRC of her obligation to be registered.
In S D Raithatha (As Liquidators of Halal Monitoring Committee Limited) v M N A Baig & Ors [2017] EWCH 2059 (Ch), the High Court found the Directors were personally liable for VAT debts due to a failure to register for, and charge, VAT.