In WM Morrison Supermarket PLC v HMRC [2023] UKUT148, the Upper Tribunal held that the First Tier Tribunal had erred in deciding that Nakd raw fruit and nut bars and Organix bars were confectionery for VAT and remitted the case back to the lower court to reconsider.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
HMRC have announced further changes to the Option To Tax (OTT) process, which will take effect from 1 February 2023. In future, HMRC will only give confirmation of the existence of an OTT in limited circumstances.
In Mainpay v HMRC [2022] EWCA Civ 1620, the Court of Appeal found that the supply of temporary medical staff by an umbrella company was a standard-rated supply of staff and was not exempt as a supply of medical services.
In Ashtons Legal v HMRC [2022] TC08641, the First Tier Tribunal (FTT) found that a partnership was able to recover input VAT on property leases entered into by an associated company. The economic and commercial reality was that the partnership was the recipient of the supply.
In HMRC v NHS Lothian Health Board [2022] UKSC 28, the Supreme Court (SC) dismissed NHS Lothian's historic input VAT claims on the grounds that there was insufficient evidence to support the value claimed.
In Northumbria Healthcare NHS Foundation Trust v HMRC [2022] UKUT00267, the Upper Tribunal (UT) found the provision of car parking by an NHS trust was subject to VAT.
In DCM (Optical Holdings) Ltd v HMRC [2022] UKSC 26, the Supreme Court (SC) ruled on whether a VAT best judgement assessment was made in time and confirmed that HMRC’s obligation to pay a VAT credit arises only when it is established that the VAT credit is due.
- Input VAT claims allowed for Harrods Steam vouchers
- Mega Marshmallows are not confectionery for VAT
- Input VAT: payments must be linked to intention to trade
- VAT deregistration denied, penalties upheld
- Input VAT largely irrecoverable by property partnership
- Football club VAT assessment was raised in time