Potential VAT Reclaims

HMRC have released a Business Brief 10 (2016) following the First-tier Tribunal (FTT) decision in Berkshire and Others. This follows on from the case of Bridport and West Dorset Golf club, in which the CJEU found that the UK had incorrectly applied VAT to certain supplies made to visitors of non-profit making members’ golf clubs and other non-profit making sports clubs. HMRC had subsequently denied repayment of VAT claims for overpaid VAT on the basis they would be unjustly enriched.

A number of clubs challenged HMRC and appealed to the FTT. The FTT concluded that the clubs would be unjustly enriched by repayment of the claims, but not to the extent that HMRC had considered. The FTT concluded that the clubs would be enriched by 10% and were, therefore, entitled to a 90% refund of the VAT incorrectly paid.

HMRC has decided not to appeal the decision and will be making the VAT refunds. If you would like to discuss an existing claim or submission of a new claim (claims can go back for up to 4 years) then please call us to discuss further on 01908 533 255.

Potential VAT Reclaims – Flat Rate Scheme

We reported last week that HMRC has changed their Notice 733 on the Flat Rate Scheme (see below).  This follows a spate of FTT cases that called into question HMRC’s guidance that all consultants who do not fit into a specific sector should select ‘management consultancy’ which has a flat rate of 14% rather than the possibility of ‘any activity that is not listed elsewhere’ which has a lower rate of 12%. In addition, mechanical engineering companies are being channelled into the sector for ‘architect, civil and structural engineer or surveyor’ category by HMRC (which has a flat rate of 14.5) even though their businesses were clearly not that of architects, thereby preventing selection of the lower 12% rate.

If you think that this may apply to you, and would like to discuss the possibility of submitting a claim to HMRC then please call us on 01908 533 255.

Published: 06.23.16 - Posted In: VAT News