Case reports

Tax / VAT: issues of single and multiple supply

Stanley Dencher, senior technical writer at Croner-i, examines various recent tax cases where questions have arisen over whether a deal should be treated as single supply or multiple supply for VAT

Tax / HMRC wins case over willing Goldfinger tax avoidance confidant

HMRC has won a case at judicial review concerning the use of confidential information freely disclosed by an informant, who got in contact to provide details of a tax avoidance scheme called Goldfinger, with the judge deciding that there had been no inducement by HMRC to create a breach of confidence

Tax / Taxpayers win unusually high number of late filing penalty appeals

In February 2018, taxpayers were victorious in nine out of 13 late filing cases brought by HMRC. Meg Wilson, expert tax writer at Croner-I, outlines the various issues raised

Tax / VAT updates: April 2018

Graham Elliott, VAT expert at City & Cambridge Consultancy is confused by HMRC’s reasoning in the Dynamic People case regarding the exemption of the special method, housebuilders’ input tax block clarified, insurance-related supply issue put into question twice

Tax / Victory for funds platform over £15m ‘loyalty bonus’ rebate

Over 150,000 investors with the fund management platform Hargreaves Lansdown are in line for a £15m windfall, after the company won a legal challenge to HMRC’s claim that their ‘loyalty bonus’ rebate payments should be taxed

Tax / ‘One in the eye’ for tax avoidance in Cyclops case

HMRC is claiming victory at an Upper Tribunal in a legal challenge involving two businesses which issued loan notes as bonuses as a form of tax avoidance – Cyclops Electronics and Graceland Fixing – which it says will protect £55m, as the scheme was used by over a hundred other companies

Tax / Upper Tribunal clarifies VAT over white goods for Taylor Wimpey

The UK’s approach to ‘blocking’ VAT recovery on the installation of white goods, such as washing machines and fridges, by builders into new homes has been further clarified in an appeal brought by Taylor Wimpey over £53m of VAT recovery, with the Upper Tribunal rejecting the housebuilder’s claim that this approach was unlawful

Tax / Tax updates: March 2018

This month's review of tax cases and tax news including bonds with euro forex clause were QCBs, loan note avoidance scheme fails in Cyclops Electronics, HMRC launches first pilot for businesses to start Making Tax Digital for VAT trial

Tax / VAT ruling on fruit-flavoured Nesquik leaves sour taste for Nestlé

Confectionery giant Nestlé’s has lost its appeal to the Upper Tribunal over the VAT rating of its milkshake powders which leaves it facing a £4m tax bill for the strawberry and banana flavours, which are standard rated, but not the chocolate version which is zero rated for VAT

Tax / BBC regional news presenter loses IR35 appeal

HMRC has won the first in a series of appeals concerning the application of employment intermediaries legislation to BBC television presenters, after a First Tier Tribunal (FTT) decided that IR35 applied to the arrangements under which the BBC contracted one of the presenters of a regional news programme, Look North

Tax / Novated property contract was liable for VAT

The Hanuman Commercial case at the First Tier Tribunal highlights the nuances of VAT liability when novating contracts. Stan Dencher, specialist tax writer at Croner-I, examines the ruling

Tax / Case: corporation tax loss can be offset in English Holdings

HMRC's appeal has been dismissed by a First Tier Tribunal (FTT) after it allowed English Holdings appeal against a closure notice that had refused the company's claim for loss relief

Tax / Case: reasonable excuse gives taxpayer part penalty relief

A taxpayer had part of his penalties cancelled after falling victim to the malpractice of his accountants however his six-month penalties remained as the daily reminders should have prompted him to take action

Tax / Case: overpaid tax claim not allowed

The High court dismissed a taxpayers claim to recover £215,000 in overpayments of tax ruling that it had no jurisdiction to entertain this claim and the taxpayer had no reasonable grounds for bringing it

Tax / Case: ignorance of basic law not reasonable excuse

A couple's appeal against late filing penalties was dismissed by a First Tier Tribunal (FTT) after it ruled that the failure to submit non-resident capital gains tax (NRCGT) returns due to ignorance of basic law was not a reasonable excuse