Finance Bill 2019 includes proposals for individuals and partnerships to join VAT groups with companies. HMRC has also published a policy paper, ‘VAT grouping eligibility criteria changes’.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
Finance Bill 2019 proposes changes to the VAT treatment of vouchers. HMRC has also published a consultation response, ‘VAT and Vouchers – summary of responses’. The law transposes the EU Vouchers Directive 2016/1065 into UK law.
Measures for new penalties for late payment of Corporation Tax, Income Tax, Capital Gains Tax, and VAT as well as new measures to change VAT repayment interest rules so that they more closely align to the rules for Income Tax Self-Assessment and Corporation Tax which have been dropped from Finance Bill 2019 will be included in a future Finance Bill.
In Abbotsley Limited & Others v HMRC [2018] UKUT 0191, the Upper Tribunal (UT) found that the CONGU handicap system was essential to golf, such that the fees paid towards its administration are exempt.
HMRC has issued new guidance on when goods are supplied on approval and how this impacts the time of supply and postage costs for VAT.
The Law Society has issued interim guidance to its members on property search fees and when these should be disbursements. This follows the decision in Brabners, which suggested the fees could never qualify as disbursements.
In The Rank Group PLC v HMRC [2018] TC06483, the First-Tier Tribunal (FTT) found that where input VAT overclaimed is set-off against output VAT overpaid, that input VAT has not been 'paid' back to HMRC.