Taxi driver service
Rushmoor Radio Taxis Ltd carried on in business as an association of taxi drivers. It appealed against an assessment in respect of under-declared VAT notified in October 2000 and also against a belated notification penalty in respect of non-registration notified in January 2001.
Rushmoor said that it provided two services to its members; firstly a communication link between a person wishing to take a taxi and the taxi driver which it subsequently agreed created a supply. Drivers paid 'radio money' on a weekly basis for this service.
Secondly in return for members paying a weekly sum Rushmoor provided credit through the drivers' accounts. This was likened to providing a current or deposit savings account by Rushmoor and therefore exempt for VAT. Customs argued that the credit facility was a contribution to office administration costs and should be standard rated.
Three issues...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.