In Gray & Farrar International LLP v HMRC [2023] EWCA Civ 121, the Court of Appeal (CoA) found that a dating matchmaking service was not a supply of consultancy for VAT purposes. This meant the services were within the scope of UK VAT when supplied to clients outside of the UK and EU.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Greenspace (UK) Ltd v HMRC [2023] EWCA Civ 106, the Court of Appeal (CoA) found that insulated conservatory roof panels were not insulation for the purposes of VAT-reduced rating.
In Daniel Dunne v HMRC [2023] TC8716, the First Tier Tribunal (FTT) denied a DIY housebuilder a VAT reclaim. The building created was considered an extension by the underlying planning application and not a separate dwelling.
In The Squa.re Limited v HMRC [2023] TC08700, the First Tier Tribunal (FTT) found that a company operating the Tour Operators Margin Scheme for VAT could not claim a VAT repayment on a negative margin.
In WM Morrison Supermarket PLC v HMRC [2023] UKUT148, the Upper Tribunal held that the First Tier Tribunal had erred in deciding that Nakd raw fruit and nut bars and Organix bars were confectionery for VAT and remitted the case back to the lower court to reconsider.
HMRC have announced further changes to the Option To Tax (OTT) process, which will take effect from 1 February 2023. In future, HMRC will only give confirmation of the existence of an OTT in limited circumstances.
In Mainpay v HMRC [2022] EWCA Civ 1620, the Court of Appeal found that the supply of temporary medical staff by an umbrella company was a standard-rated supply of staff and was not exempt as a supply of medical services.
