Summaries of interesting VAT cases for the SME owner.
In Five Star (Development) Homes Limited v HMRC [2025] TC09668, the First Tier Tribunal (FTT) found that a trainee’s failure to submit VAT returns on time before neglecting to alert the managing director did not give rise to a reasonable excuse. HMRC’s late filing penalties were valid.
In Hippodrome Casino Ltd v HMRC [2025] EWCA Civ 1259, the Court of Appeal (CoA) found that the partial exemption standard method had to be used by a casino for VAT, rather than its 'special method'.
In Telamara Ltd v HMRC [2025] TC09646, the First Tier Tribunal (FTT) found that nitrous oxide (N2O) for culinary use was not food of a kind for human consumption. It was therefore standard-rated for VAT.
In Hotelbeds UK Ltd vs HMRC [2025] EWHC 2312 (Admin), the High Court allowed the company's claim for judicial review, finding that HMRC should have allowed repayment of input VAT in line with its published guidance where there is no valid VAT invoice.
In The Prudential Assurance Company Limited v HMRC [2025] UKSC34, the Supreme Court (SC) agreed with an earlier Court of Appeal (CoA) decision, finding that VAT was due on services provided between two companies that were members of the same VAT group. The services were not invoiced or paid until after the supplier had left the group, meaning that the intra-group disregard did not apply.
In Brian David Webb v HMRC [2025] TC09611, the First Tier Tribunal (FTT) found that a former builder was not carrying on an economic activity for VAT purposes and was therefore unable to recover VAT attributable to his properties.
In JPMorgan Chase Bank NA v HMRC [2025] UKUT 188, the Upper Tribunal (UT) found that the First Tier Tribunal (FTT) had not erred in law when it found that the disregard for intra-group supplies did not apply to services supplied between group members.
