VAT

CRC v Aimia Coalition Loyalty UK Ltd (formerly known as Loyalty Management UK Ltd), Supreme Court

Northern Ireland is set to charge a levy on carrier bags from Monday 8 April. The five pence tariff will be introduced on single-use bags, with retailers paying the proceeds to the Department of Environment (DoE) Northern Ireland.

When the minimum 5p is charged by a retailer, it will be passed in full to the DoE. A business that demands extra will be required to hand over the amount less VAT, and the tax will be due to HMRC as if each bag were a standard rate item.

A client has not submitted VAT returns for three years. There is an outstanding liability of about £10,000, to which a 30% penalty will apply. However, if the flat rate scheme were to be applied, the liability would be reduced to £nil

Dancing around key dates in VAT’s 40-year history

Northside Management Ltd (TC2319)

Birmingham Hippodrome Theatre Trust v CRC, Upper Tribunal (Tax and Chancery Chamber)

A company purchases options to buy property and then sells these on. The company does not develop the property

Vehicle Control Services Ltd v CRC, Court of Appeal

CRC v Noor, Upper Tribunal (Tax and Chancery Chamber)

Hawes & Curtis Ltd (TC2415)

A software developer has recently taken on a new role writing software for an Australian firm. A decision needs to be taken as to whether this should be carried on as a self-employed person or through a limited company

HMRC are encouraging new firms to register for VAT digitally, rather than on paper, citing the advantage of on-screen assistance and an immediate acknowledgment that the taxman has received the application.

The business will be automatically enrolled to the Revenue's VAT online service, to allow submission of returns, and the certificate of registration will be available online.