New Judgment: The Advocate General representing the Commissioners of HMRC v KE Entertainments Ltd (Scotland) [2020] UKSC 28 – UKSC Blog

Posted June 25th, 2020 in fees, gambling, news, Scotland, Supreme Court, time limits, VAT by sally

‘The Appellant (“the taxpayer”) operates bingo clubs. Customers pay a fee, which entitles them to play in a number of bingo games (collectively, a “session”). The present dispute arises from a change in guidance given by HMRC about how participation fees should be calculated. Until 2007, the guidance stated that bingo promoters should calculate the participation fees separately for each game. In February 2007, HMRC issued Business Brief 07/07, which stated that participation fees should be calculated on a session by session basis.’

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UKSC Blog, 24th June 2020

Source: ukscblog.com

Input tax recovery of theatre production costs: HMRC v Royal Opera House Covent Garden Foundation [2020] UKUT 132 (TCC) – Monckton Chambers

Posted June 16th, 2020 in news, theatre, VAT by sally

‘Supplies of theatre and museum tickets fall within the ‘cultural exemption’ under Schedule 9 of the VAT Act 1994. However, the business model of many cultural venues does not rely solely on income from ticket sales. As well as funds from public grants and endowments, many venues also make taxable supplies of food and drink at on-site bars and restaurants, or sell other merchandise too. On the input side, venues will have paid VAT on the costs of staging productions or putting on exhibitions. The present appeal concerned whether the Royal Opera House’s production costs fell to be attributed solely to its exempt sales of tickets and taxable sales of programmes, or alternatively to a wider range of taxable supplies, principally its bar and restaurant offerings.’

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Monckton Chambers, June 2020

Source: www.monckton.com

VAT at the opera: deductibility of the theatrical production costs – Monckton Chambers

Posted June 11th, 2020 in news, theatre, VAT by sally

‘In HMRC v Royal Opera House Covent Garden Foundation [2020] UKUT 132 (TCC), the Upper Tribunal (Morgan J and Judge Timothy Herrington) held that VAT paid on theatre production costs was not recoverable on the basis of an economic link to taxable catering supplies, overruling a decision in the Opera House’s favour at first instance. The ruling will be significant not just for the wider theatre industry, but more generally as regards the relevance of ‘commercial reality’ arguments to questions of input tax deduction.’

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Monckton Chambers, 3rd June 2020

Source: www.monckton.com

What is Carbon Credit Fraud? – St Paul’s Chambers

‘Carbon credit VAT fraud has been the subject of an increased investigation by the government and prosecuting authorities, but the bodies generating carbon credits are usually based overseas and authorities in the UK have no control of the quality or validity of the carbon credit schemes.’

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St Paul's Chambers, 23rd April 2020

Source: www.stpaulschambers.com

New Judgment: Zipvit Ltd v Commissioners for Her Majesty’s Revenue and Customs [2020] UKSC 15 – UKSC Blog

‘The case concerned whether Zipvit, a trader selling vitamins and minerals by mail order, is entitled when accounting for VAT on its sales to make deductions of input VAT (the tax paid by the trader on goods and services purchased in connection with its business, as opposed to output VAT, which is the tax charged to the consumer by the trader on its goods or services) in respect of the price of postal services supplied to it by Royal Mail.’

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UKSC Blog, 1 April 2020

Source: ukscblog.com

VAT on; VAT off: Martial Arts and the Education Exemption – 3PB

Posted February 6th, 2020 in chambers articles, education, news, sport, VAT by sally

‘In the 1984 film Karate Kid, Mr Miyagi admonished Daniel: “I say; you do. No questions”. However, with VAT, there are always questions.’

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3PB, 29th January 2020

Source: www.3pb.co.uk

VAT charges on digital versions of newspapers overturned – OUT-LAW.com

Posted January 9th, 2020 in EC law, electronic commerce, internet, media, news, statutory interpretation, VAT by tracey

‘A major publisher has been successful in overturning a previous ruling that found that the digital versions of its newspapers were subject to VAT charges.’

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OUT-LAW.com, 8th January 2020

Source: www.pinsentmasons.com

VAT ruling on Times digital edition could save News UK millions – The Guardian

Posted January 7th, 2020 in internet, media, news, VAT by sally

‘Rupert Murdoch’s newspaper group could be set for a substantial financial windfall after successfully arguing that the Times’ digital edition is effectively a print newspaper because its website is rarely updated.’

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The Guardian, 6th January 2020

Source: www.theguardian.com

CA: Litigants do not owe duty of care to opponents – Litigation Futures

‘Litigants do not owe a duty of care to their opponents, the Court of Appeal has made clear.’

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Litigation Futures, 18th December 2019

Source: www.litigationfutures.com

VAT recoverable on shareholder employee tax avoidance scheme says tribunal – OUT-LAW.com

Posted December 11th, 2019 in company directors, employment, news, shareholders, tax avoidance, taxation, tribunals, VAT by tracey

‘Advice on incentivising employees in a tax efficient manner has a direct and immediate link to the purposes of the business and so VAT input tax should be recoverable, even if the employees are directors and shareholders, the UK’s First-tier Tribunal (FTT) has ruled.’

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OUT-LAW.com, 10th December 2019

Source: www.pinsentmasons.com

High Court ruling “shows strength of Manolete model” – Litigation Futures

‘A High Court ruling refusing to set aside £4.3m judgment in default in a suppressed sales case shows the strength of the litigation funding model used by Manolete Partners, it has been argued.’

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Litigation Futures, 5th December 2019

Source: www.litigationfutures.com

Government revokes Brexit regulation after judicial review threat – Law Society’s Gazette

‘The government has pledged to not use Henry VIII powers to make Brexit legislation after a public law charity threatened legal action.’

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Law Society's Gazette, 17th October 2019

Source: www.lawgazette.co.uk

VAT reverse charge – Practical Law: Construction Blog

Posted September 5th, 2019 in construction industry, HM Revenue & Customs, news, VAT by tracey

‘Coming into effect on 1 October 2019, the reverse charge in relation to building and construction services is set to bring about a major change in how VAT is handled in the construction sector. All those involved – including developers – need to be aware of when it will apply and how it will work.’

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Practical Law: Construction Blog, 3rd September 2019

Source: constructionblog.practicallaw.com

Solicitors Can Recover VAT On Medical Reporting Organisation Fee: British Airways PLC v Prosser – Zenith PI Blog

‘Personal Injury analysis: Frances Lawley, barrister at Zenith Chambers, explores the decision in British Airways Plc v Prosser, which found that a solicitor can recover VAT on a medical reporting organisation fee.’

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Zenith PI Blog, 9th May 2019

Source: zenithpi.wordpress.com

Solicitors can recover VAT on full MRO fee, says appeal court – Litigation Futures

‘A solicitor does not have to investigate whether a medical reporting organisation (MRO) is right to charge VAT on the whole of its bill, the Court of Appeal has ruled in a case that it said affected “thousands” of others.’

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Litigation Futures, 3rd April 2019

Source: www.litigationfutures.com

Case Comment: Commissioners for HMRC v Taylor Clark Leisure Plc (Scotland) [2018] UKSC 35 – UKSC Blog

Posted October 3rd, 2018 in appeals, interpretation, news, Supreme Court, taxation, VAT by sally

‘This case revolves around Carlton Clubs Ltd’s (“Carlton”) claims for repayment of overpaid VAT following the change in VAT treatment of income generated from bingo and gaming machines.’

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UKSC Blog, 1st October 2018

Source: ukscblog.com

The reverse charge: shaking up VAT on construction services – Practical Law: Construction Blog

Posted July 13th, 2018 in construction industry, news, VAT by tracey

‘1 October 2019 will see a significant shake-up of the VAT rules in the construction sector. New rules will come into force on that date which will, in many cases, require the recipient of the supply of construction services, rather than the supplier, to account for VAT on the supply. Large and small businesses making standard-rated or reduced-rated supplies of construction services may be impacted. There may be cash flow implications, which could be positive or negative, for the businesses concerned.’

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Practical Law: Construction Blog, 11th July 2018

Source: constructionblog.practicallaw.com

Tax tribunal rules digital newspapers should be subject to VAT – OUT-LAW.com

Posted March 20th, 2018 in internet, media, news, taxation, tribunals, VAT by sally

‘A UK tax tribunal has ruled that digital versions of daily newspapers should be subject to VAT, unlike printed editions containing the same content.’

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OUT-LAW.com, 19th March 2018

Source: www.out-law.com

Appeal court rejects convicted VAT fraudster’s claim that solicitor forced her to drop appeal – Legal Futures

Posted December 19th, 2017 in appeals, fraud, law firms, news, solicitors, tax evasion, VAT by sally

‘The Court of Appeal has rejected the arguments of a convicted VAT fraudster that her former solicitors pressured her to drop an appeal that included a claim that they represented her badly and helped land her in jail.’

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Legal Futures, 19th December 2017

Source: www.legalfutures.co.uk

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