VAT

Enjoy more than just a brief encounter with the VAT flat rate scheme

Graffiti Busters Ltd (TC3201)

A Cheruvier t/a Fleur Estelle Dance School (TC3148)

To mitigate income tax liability, a client transferred commercial property into the joint names of himself and his wife. However, only his share is eligible to capital gains tax entrepreneurs’ relief

A school wishes to improve security and intends to build a house in the grounds, which will provide accommodation for the caretaker. It seems likely the separate disposal of the building from the rest of the school will be prohibited

CRC v Brockenhurst College, Upper Tribunal (Tax and Chancery Chamber)

Dunn and Dyer (Electrical) Ltd (TC2984)

An office building is being converted into student accommodation. However, the present owner has opted to tax the building so that VAT will theoretically be payable

HMRC have set out their VAT position following the decision of the Court of Justice of the European Union (CJEU) in Fiscale Eenheid PPG Holdings BV cs te Hoogezand (C-26/12). The case concerned an employer’s entitlement to deduct VAT paid on services relating to the administration and management of a defined benefit pension scheme.

Buckingham Bingo Ltd and others (TC3093)

Record filings

A record 10.74m tax returns were filed for 2012/13 by 31 January, the highest proportion (93.4%) of on-time submissions recorded. Around 8.48m were filed online, passing last year's figure by 0.55m. The busiest day for online returns was 31 January, when HMRC received 569,847. The busiest hour occurred between 4pm and 5pm on the same day: 45,706 returns were received at more than 12 a second, while 21,027 taxpayers filed their return between 11pm and midnight on deadline day.

The practice of Construction Industry Training Board (CITB) levy deduction will no longer be supported by HMRC, the department has announced.

The CITB is responsible for promoting vocational training in the construction industry. It can impose a charge on employers or contractors to fund its operations.

Many contractors recoup the fee from subcontractors in the form of a deduction made from the “gross amount of payment” shown on monthly returns.