Entries by VATDaddy

HMRC loses £1m VAT case against Scottish farmer

In a judgement issued on 29 July, the court said taxpayers can deduct VAT incurred in purchasing the rights to a subsidy, in this case entitlements to Single Farm Payments (SFPs). HMRC had refused to allow the farmer, Frank A Smart & Son Ltd (FASL), to deduct VAT of £1,054,852 in its returns between December […]

Relevant Charitable Purpose for Nurseries? Review of the Yeshivas Lubavitch Manchester VAT case

In the wake of the court decisions in Longridge and Wakefield College we were wondering where the newly stricter conditions for defining ‘relevant charitable purpose’ left children’s care charities that had relied on the ancient precedents of Yarburgh and St Paul’s.  HMRC did not withdraw their policy to the effect that such ‘creche’ charities could be regarded as carrying out relevant charitable purposes […]

Does VAT exemption for ‘welfare services’ extend to provision of a payroll service? Cheshire Centre for Independent Living case

Cheshire Centre for Independent Living (‘the charity’) has been involved in a long-running dispute with HMRC over the VAT treatment of charges made to disabled persons in running a payroll service.  The scenario arises as follows. A disabled person may need a carer.  Where possible… To read more… click here

Mydibel and tax adjustments

The wider application of Sch 10 ‘clawback’ provisions to lease back financing deals. As you read this piece the UK may already have left the EU, though it hadn’t at the time of writing. The accepted position is that all CJEU decisions pre-dating that departure date become binding decisions at Supreme Court level. We therefore […]

VAT recovery – the tussle with HMRC continues

A subject that never seems to go away is the issue of how much VAT can be claimed on charity purchases.  Quite apart from the difficulty of determining whether, say, an activity is business or not, or exempt rather than zero rated, which can drastically affect the level of recovery, there is the issue of […]