Summaries of interesting VAT cases for the SME owner.
In NHS Ayrshire & Arran Health Board v HMRC [2025] TC09511, the First Tier Tribunal (FTT) found that part of a National Secure Adolescent Inpatient Service building was not intended to be used solely for a ‘relevant residential purpose’. It was a ‘hospital or similar institution’, meaning that construction services and materials used in its build could not be zero-rated for VAT.
In Generic Maths Ltd v HMRC [2025] TC09497, the First Tier Tribunal (FTT) found that the supply of assessments included in an online maths learning product, which tested a student’s maths ability, were standard-rated for VAT.
In WTGIL Ltd v HMRC [2025] EWCA Civ 399, the Court of Appeal (CoA) found that an insurance intermediary providing and fitting driving-monitoring devices was making an exempt supply for VAT purposes.
HM Treasury has published a consultation on a proposed new VAT relief for business donations of goods to charity. The proposal is to align the VAT treatment of goods donated for onward gifting or use by a charity with the VAT treatment for goods donated for resale.
HMRC have published 'Revenue and Customs Brief 2 (2025): The use of VAT grouping within the care industry', aimed at state-regulated care providers that form a VAT group with a non-state-regulated provider of welfare services.
In HMRC v Innovative Bites Ltd [2025] EWCA Civ 293, the Court of Appeal (CoA) allowed HMRC’s appeal and remitted the case to the First Tier Tribunal (FTT) to consider whether Mega Marshmallows are a 'sweetened prepared food which is normally eaten with the fingers'.
In HMRC v Bolt Services UK Ltd [2025] UKUT 0100, the Upper Tribunal (UT) found that mobile app ride-hailing services were within the scope of the Tour Operators Margin Scheme (TOMS).