In Koolmove Limited v HMRC [2019] TC 7305, the First tier tribunal allowed a limited company to claim back input tax on legal fees personally incurred by the director to allow the company to be established.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Field Opportunities Ltd v HMRC [2019] TC 7326, the First Tier Tribunal (FTT) held that a trader should have realised that transactions were probably connected with fraud. As a result they disallowed a VAT input tax of more than £240,000.
In the Great Escape Game Limited v HMRC [2019] TC7375 the costs of the purchase and installation of themed escape rooms were found to be capital expenditure for the purposes of the VAT Flat Rate scheme.
In Westland Horticulture Ltd v HMRC [2019] TC7283 the First tier tribunal decided a product to repair lawns could not be zero-rated as animal feed and should be standard rated.
In Thorsteinn Gardarsson v HMRC [2019] TC7255, the First tier tribunal held that a day planner was a book and not stationery for VAT. The Upper Tribunal has found that there was an error of law, in the FTT's reasoning. The case is being remitted back to the FTT for another hearing.
In Claims Advisory Group Ltd v HMRC [2019] TC07308 the First tier tribunal decided that a company engaged in recovering personal protection insurance (PPI) was not itself making an exempt supply of insurance services.
In Mr Kamraan Hussain v HMRC [2019] TC 7325, the First tier tribunal upheld a director’s personal liability notice (PLN) for inaccuracy penalties for two VAT quarters but cancelled it for a third period.