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  1. You are here:  
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  3. VAT
  4. VAT News & Cases

VAT Cases & News

Summaries of interesting VAT cases for the SME owner.

A VAT update: May 2018

Last Updated: 21 September 2020

This note is for paid subscribers.

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Use of bain marie means food subject to VAT

Last Updated: 25 May 2018

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.

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eBay account with £278k turnover did not register for VAT

Last Updated: 17 January 2019

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.

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Directors liable for VAT failings

Last Updated: 11 May 2018

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.

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New college building should be zero-rated

Last Updated: 27 April 2018

In St Brendan’s Sixth Form College v HMRC [2018] TC06384, the First-Tier Tribunal (FTT) agreed with the taxpayer that a new block at the college was independent of the existing buildings and the construction costs were zero-rated.

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No UK Fixed Establishment leads to VAT recovery

Last Updated: 14 August 2018

In Hastings Insurance Service Limited v HMRC [2018] TC06306, the First-Tier Tribunal (FTT) concluded the Gibraltarian company to which brokering services were provided did not have a UK fixed establishment, the supply was not exempt, and VAT was recoverable.

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Land use partial exemption method best for woodlands

Last Updated: 07 December 2022

In Will Woodland v HMRC [2017] TC06021, the First-Tier Tribunal (FTT) agreed with the partial exemption method used by the charity: based on the way in which the land was used, an area basis.

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