In MJL Contracts Ltd v HMRC [2023] UKUT 254, the Upper Tribunal (UT) found that there was no additional requirement placed on HMRC to make an assessment before imposing a surcharge penalty for non-payment of VAT.
VAT Cases & News
Summaries of interesting VAT cases for the SME owner.
HMRC have published Revenue and Customs Brief 7 (2023) ‘Change to the VAT treatment of drugs and medicines supplied under patient group directions’. This sets out a temporary zero rating for VAT.
In UK Funerals On-Line Ltd v HMRC [2023] TC08937, the First Tier Tribunal (FTT) decided that the repatriation of dead bodies was a specialist transport service, making it zero-rated for VAT and not exempt as services provided in connection with the disposal of human remains.
From mid-November 2023 businesses will no longer be able to access the paper VAT registration form online and will have to either register online or call HMRC to request a form.
In All Answers Limited v HMRC [2023] TC08920, the First Tier Tribunal (FTT) found that a company using third-party writers to supply bespoke academic work to individuals was not acting as an agent. VAT was due on the full amount paid by the customer.
HMRC have announced that they will be changing the functionality for agent authorisation for VAT. The change will impact copying across authorisations and will have effect from October 2023.
In Philip Spani v HMRC [2023] TC08916, the First Tier Tribunal (FTT) found that a newly constructed cottage did not qualify for VAT recovery under the DIY Housebuilders scheme. Constraints imposed by the property’s planning permission meant it was built in furtherance of a business.