From 1 January 2025, all education services and vocational training supplied by a private school or a 'connected person', for a fee, will be subject to VAT at the standard rate of 20%. This also applies to boarding services closely related to this type of supply.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
In Bottled Science Limited v HMRC [2024] TC09231, the First Tier Tribunal found that the collagen drink product 'Skinade' was not food for VAT purposes and therefore could not be zero-rated.
HMRC announced that from 5 August 2024, any changes to clients’ VAT registration details must be made using the Agent Services Account, not by using form VAT484 or any other postal or electronic means.
In Good Choice 2016 Limited and Mrs Fang Bo Guo v HMRC [2024] TC09214, the First Tier Tribunal (FTT) upheld HMRC's VAT assessments and penalties along with Personal Liability Notices issued to the company's sole director. The company had suppressed sales and purchases.
In Queenscourt Limited v HMRC [2024] TC09184, the First Tier Tribunal (FTT) found that dip pots supplied as part of a KFC meal deal formed part of a single standard-rated supply of hot food.
The expected time for HMRC to respond to applications for deregistration and group registration has been extended to 40 working days.
In Nottingham Forest Football Club Limited v HMRC [2024] UKUT 00145, the Upper Tribunal (UT) found that a VAT assessment for VAT errors arising from a change in its accounting system was made by HMRC was made 'in time'. The club had failed to show otherwise and lost its appeal as a result.
- Input VAT not recoverable on costs of share sale
- Revenue and Customs Brief 7 (2024): VAT Treatment of Voluntary Carbon Credits
- Letting of serviced accommodation subject to VAT
- Basic supply description adequate for VAT
- Revenue and Customs Brief 5 (2024): Tour Operators' Margin Scheme for B2B wholesale supplies
- Revenue and Customs Brief 4 (2024): Interpretation of VAT and excise law from 1 January 2024