VAT

The UK’s VAT exemption for business supplies of research between eligible bodies has been withdrawn with effect from 1 August 2013.

The move follows notification from the European Commission that the exemption (VATA 1994, sch 9 group 6) does not comply with European legislation. HMRC have published Revenue and Business Brief 21/13 to provide full details.

Paul Charles Hunt (TC2676)

A client has started to work in the engineering design business and has purchased two computer-aided design programs, costing about £4,000 each

HQ Graphics Ltd (TC2640)

CRC v Pendragon plc and others, Court of Appeal

A potential VAT problem for overseas landlords – and a bank account horror story

An employer reimburses the employees for the cost of fuel that has been used for business purposes. Employees do not always retain the supporting invoice for the purchase of fuel, and there is doubt as to whether VAT can be recovered

GB Housley (TC2548)

Advisers, taxpayers and the Revenue have something to learn from the Brockenhurst College case

Newey v CRC, Court of Justice of the EU

Tax officials have moved to placate uncertainty about the VAT treatment of insolvency practitioners who act as supervisors while not having previously acted as nominees, following the First-tier Tribunal decision in Paymex Ltd (TC1210) and the HMRC publications in response to the ruling.

The department has produced Revenue & Customs Brief 17/13 to confirm the treatment:

James Hillis (TC2611)