Case reports

Tax / HMRC loses further tour operator VAT case at FTT

HMRC has lost its appeal at First Tier Tribunal (FTT) over its claim that an online ‘bedbank’ supplier of hotel rooms via a bookings website should have been paying VAT on its services, after arguing that in this particular instance foreign law applied

Tax / Supreme Court rules on validity of claim in De Silva case

HMRC should be relieved with the Supreme Court’s decision in the De Silva case as if the outcome had been different the tax authority may have had to repay the many accelerated payments already collected, says Michael Avient, consultant at JS&Co

Tax / Dencher on VAT: pub apportioned using floor space in Matthews

When it comes to property transactions and VAT compliance there are some tricky issues to surmount. Stanley Dencher, specialist tax writer at CCH Online, considers the complexities of VAT treatment highlighted in the Matthews [2016] TC 05426 case about apportionment of a public house and upstairs flat 

Tax / Uber loses appeal on payment of national minimum wage to drivers

In a blow to one of the largest operators in the gig economy, Uber has lost its appeal to overturn last year’s Employment Tribunal decision that its drivers should be paid the national minimum wage and holiday pay, which could result in a hike in NICs payments for the company

Tax / Littlewoods: end of the road for compound interest claims

Robert Marchant, partner at Crowe Clark Whitehill, considers how the outcome of the Littlewoods case will affect outstanding compound interest VAT reclaims, which are estimated to total as much as £17bn

Tax / When is a trust not a trust?

With the furore over the release of the Paradise Papers highlighting the widespread use of aggressive tax avoidance, Susan Rosser, partner and Gemma Rochelle, senior associate, litigation dispute resolution at Mayer Brown International LLP examine the risks of discretionary trusts in light of the long-running Pugachev litigation

Tax / Film scheme investors fail in £1.3m Vanguard share loss relief claim

Two investors in a film production company have lost their claims for some £1.3m of share loss relief after lengthy analysis at a First Tier Tribunal (FTT), in a further success for HMRC against tax avoidance schemes where there is no clear evidence of a trade being carried out

Tax / Jimenez case: HMRC powers stop at the border

The landmark Jimenez ruling, handed down on 20 October 2017, has clarified once-and-for-all that the degree to which HMRC can investigate the tax affairs of overseas individuals is much reduced, says Steve Thomas, solicitor at Excello law and representative of the appellant

Tax / Case: clarifying shares with no dividend rights

An Upper Tribunal overturned a previous First Tier Tribunal (FTT) decision that shares that do not have a right to a dividend cannot be said to have a right to a dividend at a fixed rate 

Tax / Case: taxpayer eligible for PRR despite brief length of residency

A First Tier Tribunal (FTT) allowed a taxpayer's claim for principal private residence relief (PRR), despite a brief period of residency, due to a certain period of occupation showing a level of permanence or expected continuity

Tax / Case: Tribunal upholds penalty for inaccuracy in Merrie

A taxpayer's appeal against an inaccuracy penalty was dismissed by a First Tier Tribunal (FTT) after it was found he did not take reasonable care to avoid this error by seeking professional advice, therefore the minimum 15% penalty was upheld

Tax / Littlewoods loses claim for £1.25bn interest payment from HMRC

The Supreme Court has found in favour of HMRC in a long running case concerned the payment of interest on a VAT refund due to Littlewoods, with the judges dismissing the catalogue company’s claim that it was due an additional £1.25bn in compound interest

Tax / VAT updates: November 2017

Graham Elliott, VAT expert at City & Cambridge Consultancy considers missed direct debit and default surcharge in Spiral Packs case, Mercedes beats HMRc over agile car leases, liability of pension fund management

Tax / Tax updates: November 2017

This month's review of tax cases and tax news including, simple assessment to replace tax returns, appeal over tax amendments part allowed in abuse case, doctor provided services on a self-employed basis, SMEs understate turnover and hike costs to evade tax

Tax / Case: doctor provided services on a self-employed basis

A First Tier Tribunal (FTT) concluded that a doctor was operating as self employed therefore the profits he earned should have been subject to income tax and Class 4 national insurance contributions (NICs) not corporation tax