Deeks VAT News Issue 9
Keeping you up to date on VAT Changes
Keeping you up to date on VAT changes
Issue 8 27 May 2020
Welcome to the latest edition of Deeks VAT News.
In this week’s issue we look at the following areas:
- Revenue and Customs Brief 1 (2014): VAT – fiscal neutrality and gaming machines
- Kelvin Lamb T/A The Dolphin  – whether the assessment was to HMRC’s best judgment
- Mainpay Limited  – Supply of staff or medical care
- Window to the Womb (Franchise) Limited, D I Harries Limited and DJC Studios Limited  – VAT liability whether exempt supplies
- Carl Sansom  – DIY builders claim
- Abdul Vahab Kharadi  – VAT Registration failure to notify
- Sean Convery  – whether the assessment was to HMRC’s best judgment
Revenue and Customs Brief 1 (2014): VAT – fiscal neutrality and gaming machines
Finally, after 12 years, the decision in the Rank and Done Brothers case brings two strands of the gaming machine litigation to an end. The Tribunal has ruled in favour of the taxpayer, that the machines should have been exempt from VAT, as to treat them as standard-rated was against fiscal neutrality.
Please see the business brief :
Kelvin Lamb T/A The Dolphin  UKFTT 00206 (TC)
During a routine VAT inspection, it was discovered that the taxpayer had underdeclared VAT for a number of years. The Appellant does not dispute that he is liable to an assessment but disputes the quantum of the assessment made. The case is based on whether the assessment was to HMRC’s best judgment.
The Tribunal was satisfied that HMRC when making the assessment acted in good faith, and applied a fair and reasonable methodology to determine quantum, even if there might have been other methodologies that HMRC might have decided to apply. The appeal was dismissed.
Mainpay Limited  UKFTT 00204 (TC)
This case concerns whether the supply made by Mainpay Limited was of staff or medical care. The medical exemptions from VAT must be construed strictly and will depend on the facts and contracts in place. This appeal was dismissed and the supply was held standard rated for VAT purposes.
Window to the Womb (Franchise) Limited, D I Harries Limited and DJC Studios Limited  UKFTT 00201 (TC)
This case concerned whether the supplies of various ultrasound scanning services to pregnant women fell under the medical care exemption from VAT. It was held that it did and the appeal was allowed.
Carl Sansom  UKFTT 00198 (TC)
This is another case regarding the DIY housebuilders scheme and the due date for submitting a claim. The claim was submitted within three months of the certificate of completion. HMRC refused the claim on the basis that it should have been made “by” one or more earlier dates. The Tribunal held that HMRC cannot displace the certificate of completion as primary evidence of property’s completion and the appeal was allowed.
Abdul Vahab Kharadi  UKFTT 00200 (TC)
The taxpayers wished to appeal against a compulsory VAT registration and “failure to notify” penalties, but there was an eight-month delay due to misunderstanding of VAT appeal procedure by taxpayer’s accountants. Held not to be a good reason. However, HMRC failed to offer a review at the same time as they notified their decision on penalties. The tribunal granted permission to appeal out of time in respect of penalty but denied the taxpayer’s appeal in respect of registration.
Sean Convery  UKFTT 00196 (TC)
Another case where HMRC was held to have made assessments to best judgment. The case also looks at whether the assessments were out of time. The appeal was dismissed.
We trust that you will find this of interest. If you would like to discuss any of the issues in this newsletter or any other VAT issue please do get in touch for a free no-obligation chat.