In Alan and Diane McFarland (a partnership) v HMRC [2026] TC09799, the First Tier Tribunal (FTT) found that the supply of 'bed and breakfast' services provided for cattle was not two separate supplies for VAT purposes.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Story Terrace Limited v HMRC [2025] TC09725, the First Tier Tribunal (FTT) found that a company providing personalised ghost-written books was making a zero-rated supply for VAT purposes. The book was the predominant element of the supply despite significant research, writing, and design services, which would have been standard-rated in isolation.
In Julian & Anor v HMRC [2026] TC09768, the First Tier Tribunal (FTT) found that taxpayers who failed to register for VAT had a reasonable excuse. In the circumstances, it was objectively reasonable for them to be unaware of changes to the Agricultural Flat Rate Scheme, which resulted in their VAT registration obligation.
In Mark Glenn Ltd v HMRC [2026] UKUT 00034, the Upper Tribunal (UT) found that the supply of a female hair loss treatment system was zero-rated for VAT purposes. In the circumstances, hair loss was a disability, and the treatment consisted of adapting goods to suit the condition of the disabled person.
In HMRC v Hotel La Tour Ltd [2025] UKSC 46, the Supreme Court upheld the Court of Appeal’s ruling that input VAT on professional fees incurred in connection with an exempt share sale were not deductible.
HMRC have published Revenue and Customs Brief 1 (2026): 'Removal of linked goods concession', which confirms that the Extra Statutory Concession (ESC) for VAT on minor promotional items supplied in linked supplies schemes has been withdrawn.
In WM Morrison Supermarkets Ltd v HMRC [2025] TC09722, the First Tier Tribunal (FTT) found that rotisserie chickens were a supply in the course of catering, and therefore subject to VAT at 20%, as they were provided to customers in packaging that retained heat.
