Latest News

Taxpayer loses in “white goods” VAT claim - maybe

The First-tier Tribunal has delivered its “preliminary matter” decision in the case of Taylor Wimpey plc, in which the taxpayer, who was a representative member of a VAT group that included a number of speculative builders, was seeking a refund of VAT paid on “white goods” and certain other items included when new homes were sold. The appellant sought repayment of nearly £61 million, but there is a question that is yet to be resolved over whether the increase was a new (time barred) claim as opposed to an extension of the earlier one. The Tribunal judge was asked to consider the underlying technical issue, the validity of the so-called “blocking order”,

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Time limits for assessments – out of time

In the VAT appeal of Temple Retail Limited, the Appellant accepted that it had made an error by not recharging certain costs to an associated company. The issue before the Tribunal was whether the assessment was made more than one year after “evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, came to their knowledge” and thus whether it was out of time.

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HMRC issue Brief in respect of changes in policy on TOGC’s

Following its consideration of the FTT decision in Robinson Family Ltd, HMRC has issued their brief 27/2014 announcing three shifts in policy in relation to the rules surrounding the transfer of a business as a going concern (TOGC). The changes are as follows:

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Do you want to know a simple way to earn more fees for your business? Its easy, refer a client or a specific VAT query to The VAT People. We will be happy share the benefit of the fee paid to us by the client by paying part of it to you!

Why would we do this?

Like most consultancy businesses we thrive on work referred to us by our network of professional contacts and we like to think that we are working in partnership with you with us providing solutions to your client’s VAT queries or VAT issues and you providing the clients. Our referral fee reflects this since .

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HMRC Asking For Financial Security

Given the advent of the new Customs law and the fact that businesses who look to use Customs Reliefs, e.g. a bonded warehouse, will possibly be required to lodge a security come June 2016, it is interesting to note that we are coming across HMRC seemingly taking a hard line approach in that they are already looking for security as a standard measure.

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Customs News Update – Points International Clients need to know

HMRC Love a Penalty

Although we are all used to HMRC applying penalties on VAT errors, they have typically used their powers of applying civil penalties rather sparingly in the past where they have been duty underpayments, saving these for persistent offenders.

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Change Of Address

As from the 27th June 2014 our new address is:

Charter House, Norbury Street, Stockport, SK1 3SH

Our Telephone and Fax Numbers remain the same.

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HMRC have released a Brief in respect Members' golf clubs and other non-profit making sports clubs

HMRC’s brief outlines their revised policy following the recent CJEU decision in Bridport & West Dorset Golf Club. HMRC now accepts that supplies of sporting services to both members and non-members of non-profit making sports clubs can qualify to be treated as exempt from VAT. HMRC intends first to deal with repayment claims by members clubs who decide to reimburse non-members. Secondly, it will examine the scope for restricting repayments, on unjust enrichment grounds, to clubs who do not make such reimbursements.

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Default Surcharge – Reasonable Excuse?

In the case of Princi London Limited, the VAT Tribunal allowed the appeal of the taxpayer in respect of a default surcharge totalling £13,378. The appellant was seeking to argue that it had a “reasonable excuse” for the late payment of its VAT return.

The Appellant had contacted HMRC on two separate occasions to request Time To Pay the company’s VAT return and the Appellant from his notes can evidence that he spoke to an officer of HMRC, however, the officer cannot recall the conversation in question.

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UK VATable or not?

A recent First-tier Tribunal decision highlights how easy it can be to become involved in an expensive dispute with HMRC relating to the VAT treatment of supplies of services and the impact of applying for the wrong type of VAT registration.

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