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.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
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.
In Ashtons Legal v HMRC [2022] TC08641, the First Tier Tribunal (FTT) found that a partnership was able to recover input VAT on property leases entered into by an associated company. The economic and commercial reality was that the partnership was the recipient of the supply.