HMRC has revised VAT Notice 733, responding to criticism by the FTT in a recent decision that the department had a tendency to view its ‘own guidance as being authoritative’, rather than giving the legislation its ‘ordinary meaning’. The revised notice has removed the presumption that consultants in general should use the category for ‘management consultants’ carrying the 14% rate, rather than the 12% rate for ‘business services not listed elsewhere’. It has also removed the guideline for engineering consultants and designers always to use the category for ‘architect, civil and structural engineer or surveyor’ to which the 14.5% rate applies.
The ATT, which had pressed for this change, notes that the guidance now indicates more clearly that the starting point for businesses choosing a category is the list in reg 55K of the VAT Regulations, SI 1995/2518.
HMRC has revised VAT Notice 733, responding to criticism by the FTT in a recent decision that the department had a tendency to view its ‘own guidance as being authoritative’, rather than giving the legislation its ‘ordinary meaning’. The revised notice has removed the presumption that consultants in general should use the category for ‘management consultants’ carrying the 14% rate, rather than the 12% rate for ‘business services not listed elsewhere’. It has also removed the guideline for engineering consultants and designers always to use the category for ‘architect, civil and structural engineer or surveyor’ to which the 14.5% rate applies.
The ATT, which had pressed for this change, notes that the guidance now indicates more clearly that the starting point for businesses choosing a category is the list in reg 55K of the VAT Regulations, SI 1995/2518.
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