2011 review: VAT

2011 has been a very busy year for VAT practitioners. While key legislative changes have been limited to the new place of supply rules for cultural, artistic, sporting, scientific, educational and entertainment services and the increase in the standard rate to 20%, case law has led to significant developments. The treatment of benefits under salary sacrifice schemes is finally resolved but could increase costs for unwary organisations. The principle of fiscal neutrality is increasingly being used to iron out inconsistencies in the application of VAT; but for agency workers, HMRC is still resisting arguments that would save money for many organisations.