HMRC is pushing the boundaries of taxation by taking cases involving small businesses, and is currently making assertions that conflict with its own known interpretation of the law, writes Jonathan de Wilton (Grant Thornton).
Rufforth Park
The case of Rufforth Park Ltd v HMRC [2022] UKFTT 43 (TC) concerned a company run by the Ginley family that had been holding car boot sales every Sunday for several decades. Originally on the advice of HMRC it accounted for VAT on the pitch fees. After some years the company convinced HMRC its income was exempt because other car boot operators were not charging VAT and so was refunded the VAT with interest. However in 2019 an officer reviewed the business records and decided the pitch fees of between £9 and £20 were standard rated. He reasoned the pitches were provided with other goods and services and...
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HMRC is pushing the boundaries of taxation by taking cases involving small businesses, and is currently making assertions that conflict with its own known interpretation of the law, writes Jonathan de Wilton (Grant Thornton).
Rufforth Park
The case of Rufforth Park Ltd v HMRC [2022] UKFTT 43 (TC) concerned a company run by the Ginley family that had been holding car boot sales every Sunday for several decades. Originally on the advice of HMRC it accounted for VAT on the pitch fees. After some years the company convinced HMRC its income was exempt because other car boot operators were not charging VAT and so was refunded the VAT with interest. However in 2019 an officer reviewed the business records and decided the pitch fees of between £9 and £20 were standard rated. He reasoned the pitches were provided with other goods and services and...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")