Summaries of interesting VAT cases for the SME owner.
In Illuminate Skin Clinics Ltd v HMRC [2025] UKUT 341, the Upper Tribunal (UT) found that the First Tier Tribunal (FTT) had made an error of law when considering the medical exemption for VAT. The FTT had failed to give sufficient consideration to the documents which evidenced a diagnosis by the clinic's doctor of any health disorders.
In Ferrero UK Ltd v HMRC [2025] TC09654, the First Tier Tribunal (FTT) found that Nutella Biscuits were not chocolate-covered and were therefore zero-rated for VAT.
In Eurocent (Buckingham) Ltd v HMRC [2025] TC09666, the First Tier Tribunal (FTT) partially granted an appeal against HMRC's denial of input VAT recovery on fees associated with buying retail units.
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.
