VAT

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)

A business traveller is having difficulty obtaining a VAT invoice for hotel accommodation because the booking agent uses the tour operators’ margin scheme

HMRC have clarified their policy on when laboratory pathology services are exempt from VAT.

The department treats as exempt NHS pathology services that have been outsourced to the private sector. Suppliers have challenged the view on the grounds they do not supply diagnostic services but provide information to a third party to enable it to make a diagnosis. Others have argued that they are not state-regulated institutions, or they are not performing services in a state-regulated institution.

Colaingrove Ltd (TC2534)

Honourable Society of the Middle Temple v CRC, Upper Tribunal (Tax and Chancery Chamber)

The taxpayer purchased a property for £200,000 plus VAT. He did not opt to tax the building and it was already let to a hairdressing business, although this ceased three months later

B Massey t/a The Basement Restaurant (TC2520)

CRC v Atlantic Electronics Ltd, Court of Appeal

Making the most of HMRC’s greatly improved digital VAT services

A dentist traded from a property that he had owned for 20 years. On retirement, he spent £200,000 converting the property back to residential accommodation. Before sale, he let the property for six months

R Burton (TC2522)