A Case of Little Interest? The Supreme Court’s Judgment in Littlewoods – Blackstone Chambers

Posted November 23rd, 2017 in appeals, HM Revenue & Customs, interest, news, Supreme Court, time limits, VAT by sally

‘The Supreme Court (‘SC’) on 1 November 2017 handed down judgment in Littlewoods Ltd and others v. HMRC [2017] UKSC 70. In a judgment of Lords Reed and Hodge (with whom Lords Neuberger, Clarke and Carnwath) agreed, the SC has unanimously allowed HMRC’s appeal against the decisions below of both Henderson J and the Court of Appeal (Arden, Patten and Floyd LJJ). The headline grabbing outcome is that approximately £17 billion of compound interest does not have to be paid by the Revenue to taxpayers who overpaid VAT and made Fleming claims for recovery. But the SC’s reasoning is of much wider interest.’

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Blackstone Chambers, 2nd November 2017

Source: www.blackstonechambers.com

UK government publishes post-Brexit customs legislation – OUT-LAW.com

Posted November 23rd, 2017 in bills, customs and excise, news, sale of goods, taxation, VAT by sally

‘Legislation that will underpin the UK’s standalone post-Brexit customs regime has been published by the government.’

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OUT-LAW.com, 22nd November 2017

Source: www.out-law.com

Bridge is not a sport and can’t have tax break, says European Court of Justice – Daily Telegraph

Posted October 27th, 2017 in EC law, international courts, news, sport, statutory interpretation, VAT by sally

‘Bridge is not a sport, European Union judges ruled today, in a decision that dealt a blow to British clubs’ hopes of a VAT tax break.’

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Daily Telegraph, 26th October 2017

Source: www.telegraph.co.uk

Software tools can benefit from VAT exemption, rules UK Tribunal – OUT-LAW.com

Posted September 19th, 2017 in computer programs, EC law, news, tribunals, VAT by tracey

‘A software tool can qualify for a VAT exemption, the UK’s First Tier Tribunal has ruled, rejecting arguments from HMRC that the provision of IT tools cannot benefit from an exemption in the EU VAT Directive.’

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OUT-LAW.com, 18th September 2017

Source: www.out-law.com

Law firm faces £68,000 VAT bill after tribunal rules electronic property search fees are not disbursements – Legal Futures

‘A leading north-west law firm has been ordered to pay £68,000 in VAT for electronic local authority property searches it procured from an agency, after a tribunal ruled that they should not have been treated as disbursements.’

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Legal Futures, 18th September 2017

Source: www.legalfutures.co.uk

HMRC policy on VAT and student accommodation is wrong, says Tribunal – OUT-LAW.com

Posted August 3rd, 2017 in construction industry, HM Revenue & Customs, news, universities, VAT by tracey

‘There is “absolutely no basis” for an HM Revenue & Customs (HMRC) policy that the VAT treatment of supplies made in relation to a building by a sub-contractor depends upon the treatment adopted by the main contractor, the UK’s First-tier Tribunal has decided in a case concerning student accommodation.’

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OUT-LAW.com, 3rd August 2017

Source: www.out-law.com

Investment Trust Companies v Revenue and Customs Comrs – WLR Daily

Posted April 26th, 2017 in appeals, EC law, HM Revenue & Customs, law reports, restitution, Supreme Court, VAT by sally

Investment Trust Companies v Revenue and Customs Comrs [2017] UKSC 29

‘The claimants were “closed-ended” investment funds constituted as limited companies. Between 1992 and 2002 they received supplies of services from investment managers rendered pursuant to agreements which provided for the managers to be remunerated by the payment of fees plus VAT “if applicable”. Under the legislation then in force such services did not qualify for exemption and the managers charged VAT at the standard rate. The managers made periodic VAT returns which accounted for the VAT charged as output tax, reclaimed input tax and paid the revenue the net difference. Following a decision of the Court of Justice of the European Union it transpired that the supplies of the investment management services should have been exempt from VAT. Accordingly, the managers made claims to the revenue under section 80 of the Value Added Tax Act 1994 for repayment of sums accounted for and paid by them in error. The revenue met those claims but, in accordance with the statutory provisions, limited repayments to the net amounts which the managers had paid and did not include any amounts relating to periods which were time-barred. The managers forwarded the reimbursements to the claimants as required under section 80 but since they were insufficient to meet the full amount of VAT which had been mistakenly paid by them the claimants brought proceedings against the revenue on grounds of unjust enrichment and breach of European Union law. The judge found that the revenue had been enriched by the full amount of VAT paid by the claimants to the managers; that the claimants had no cause of action at common law because the statutory scheme protected the revenue from any liability to refund VAT except as provided for under section 80 of the 1994 Act, but that, since, within the limitation period, European Union law required that exclusion to be disapplied, the claimants were entitled to repayment of the full amount of VAT paid by the claimants within that period. The claim in relation to the time-barred periods was therefore dismissed. On appeal by both parties the Court of Appeal concluded that the statutory scheme did not exclude a common law claim but that, since the revenue had only received payment of output tax net of input tax from the managers, it had not been unjustly enriched over the periods in which a refund had been paid to the managers, although a similar repayment was payable to cover the time-barred periods.’

WLR Daily, 11th April 2017

Source: www.iclr.co.uk

‘Reverse VAT charge’ proposed to tackle construction sector labour fraud – OUT-LAW.com

Posted March 29th, 2017 in construction industry, fraud, news, VAT by sally

‘Contractors could become responsible for accounting for VAT on construction labour services that they purchase under plans put forward for consultation by HM Revenue and Customs (HMRC).’

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OUT-LAW.com, 27th March 2017

Source: www.out-law.com

Tax barrister plans to take Uber to court over alleged £20m black hole – The Guardian

‘A leading tax lawyer is planning to challenge Uber in the courts over what he alleges could be a £20m-a-year black hole in its tax payments in the UK.’

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The Guardian, 21st February 2017

Source: www.guardian.co.uk

Bar chairman warns on post-Brexit practising rights – Legal Futures

‘The ramifications of leaving the European Union are likely to be wide-ranging and could restrict the ability of barristers to practise outside England and Wales, the chairman of the Bar Council has warned.’

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Legal Futures, 6th July 2016

Source: www.legalfutures.co.uk

VAT and service charges: indivisible or not indivisible-is that the question? – Tanfield Chambers

Posted April 26th, 2016 in appeals, landlord & tenant, news, service charges, tribunals, VAT by sally

‘This article gives consideration of the decision of the Upper Tribunal (Lands Chamber) in Janine Ingram v Church Commissioners for England [2015] UKUT.’

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Tanfield Chambers, 26th April 2016

Source: www.tanfieldchambers.co.uk

Shop Direct Group (Appellant) v Commissioners for Her Majesty’s Revenue and Customs (Respondent) – Supreme Court

Posted February 18th, 2016 in appeals, corporation tax, law reports, repayment, Supreme Court, VAT by sally

Shop Direct Group (Appellant) v Commissioners for Her Majesty’s Revenue and Customs (Respondent) [2016] UKSC 7 (YouTube)

Supreme Court, 17th February 2016

Source: www.youtube.com/user/UKSupremeCourt

Shop Direct VAT repayments were subject to corporation tax, Supreme Court rules – OUT-LAW.com

Posted February 18th, 2016 in appeals, corporation tax, news, repayment, Supreme Court, VAT by sally

‘Catalogue company Shop Direct must pay corporation tax on a £125 million repayment of VAT overpaid by companies in the group that no longer trade, the Supreme Court has confirmed.’

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OUT-LAW.com, 18th February 2016

Source: www.out-law.com

David Bedenham Discusses HMRC’s Alcohol Wholesalers Registration Scheme that Commences on 1 October 2015 – 11 KBW

‘Alcohol duty fraud costs the treasury an estimated £1 billion per annum. HMRC has stated that
‘the wholesale sector is the major point where illicit alcohol is diverted by organised criminals into retail supply chains…this link in the supply chain is vulnerable because it is the only activity not required to be authorised by HMRC…Introducing a requirement for wholesalers to register with HMRC will address this and reduce opportunities for fraud.’’

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11 KBW, 4th September 2015

Source: www.11kbw.com

UK Supreme Court upholds HMRC’s position in gaming machine VAT case – OUT-LAW.com

Posted July 13th, 2015 in appeals, gambling, HM Revenue & Customs, interpretation, news, Supreme Court, VAT by tracey

‘The element of chance in a computerised slot machine connected to a separate random number generator (RNG) was still “provided by means of the machine” for the purposes of VAT legislation, meaning that the takings from that machine were subject to VAT, the UK’s highest court has confirmed.’

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OUT-LAW.com, 10th July 2015

Source: www.out-law.com

Rank Group plc v Revenue and Customs Comrs – WLR Daily

Rank Group plc v Revenue and Customs Comrs: [2015] UKSC 48; [2015] WLR (D) 299

‘Slot machines operating through multi-terminal systems in which random number generators (“RNGs”) were housed separately from the terminals were to be treated as composite machines providing players with an element of chance in the game within the meaning of section 26 of the Gaming Act 1968 and Group 4, item 1, note (3) of Schedule 9 to the Value Added Tax Act 1994. The takings from such machines were, accordingly, not exempt but liable to value added tax.’

WLR Daily, 8th July 2015

Source: www.iclr.co.uk

Upper Tribunal: Ocean Finance VAT arrangements could stand as not ‘wholly artificial’ – OUT-LAW.com

Posted June 10th, 2015 in advertising, HM Revenue & Customs, news, tax avoidance, tribunals, VAT by sally

‘HM Revenue and Customs (HMRC) should not look beyond the contractual arrangements that govern a company’s structure when establishing liability for VAT unless those arrangements do not reflect “economic and commercial reality”, a tribunal has ruled.’

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OUT-LAW.com, 5th June 2015

Source: www.out-law.com

Littlewoods Ltd and others v Revenue and Customs Commissioners (No 2) – WLR Daily

Posted June 3rd, 2015 in appeals, EC law, interest, law reports, restitution, VAT by sally

Littlewoods Ltd and others v Revenue and Customs Commissioners (No 2) [2015] EWCA Civ 515; [2015] WLR (D) 228

‘In accordance with a taxpayer’s rights under European Union law, sections 78 and 80 of the Value Added Tax act 1994 would be disapplied to enable the taxpayer to recover more than simple interest by seeking to recover in restitution the time value of sums which they wrongly paid.’

WLR Daily, 21st May 2015

Source: www.iclr.co.uk

Regina v Doran and another – WLR Daily

Regina v Doran and another [2015] EWCA Crim 384; [2015] WLR (D) 129

‘A surveillance operation mounted by Revenue and Customs because they suspected that a consignment of cigarettes were being imported with the purpose of evading the duty payable did not result in a disconnection between the goods and the importers. Revenue and Customs were thereby monitoring the import, not controlling it, so that a judge was entitled to find that the importers were “holding” the goods within the meaning of regulation 13(1) of the Tobacco Products Regulations 2001 and, by that means, were retaining their connection with the goods at the excise duty point.’

WLR Daily, 17th March 2015

Source: www.iclr.co.uk

HMRC Dishonesty Allegation “seriously flawed” – RPC Tax Take

Posted January 15th, 2015 in banking, fraud, HM Revenue & Customs, news, taxation, tribunals, VAT by sally

‘The First-tier Tribunal (Tax Chamber) (“FTT”) has ruled, in Citibank NA v Revenue and Customs Commissioners, that HMRC’s pleadings were “seriously flawed”. When alleging fraud against a taxpayer, HMRC must clearly plead that the taxpayer had a dishonest state of mind.’

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RPC Tax Take, 14th January 2015

Source: www.rpc.co.uk