VAT

Can input tax be recovered on goods purchased in the past eight years?

A partnership (TC4358)

VAT refund scheme

HMRC has issued Notice 1001 to explain the rules that apply to charities eligible for refunds of VAT under VATA 1994, s 33C and s 33D.  Qualifying charities can claim a refund of VAT incurred on most goods and services supplied to them on or after 1 April 2015 and which relate to their non-business activities. The charity does have to be VAT registered.

The amount of tax relief claimed by charities grew to £3.31bn in 2014/15, from £3.07bn in 2013/14, according to latest figures from HMRC.

The total amount comprised £1.64bn in business rates relief, £1.2bn from gift aid, £300m in VAT breaks, and £170m worth of stamp duty land tax relief.

The Revenue’s numbers, which are provisional, indicate that reliefs for individuals on gifts to charities increased by £100m to £1.2bn, with rises in inheritance tax relief, higher-rate breaks on gift aid and covenants, and relief on gifts and shares.

Southern Cross Employment Agency Ltd v CRC, Upper Tribunal

Fraudulent transactions: S&I Electronics plc v CRC, Upper Tribunal

Kumon Educational UK Co Ltd (TC4291)

New opportunities to form and extend VAT groups

What rate of VAT should be charged on electricity used at a car wash?

The Commons debate of Finance (No 2) Bill 2015

Investment Trust Companies (in liquidation) v CRC, Court of Appeal

HMRC greatly underestimated the impact of European Union tax rules for digital services, according to a study by Enterprise Nation, a membership group for start-up businesses.