Fabian Barth examines how HMRC’s positions on input tax deduction have varied across cases, citing Royal Opera House, Hotel La Tour, and Littlewoods. He highlights contradictory stances on LVCR trade in the Channel Islands, underscoring the complexity of VAT compliance. The post emphasizes that court rulings and precedent shape the practical application of VAT rules.
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Bloomberg Tax · about 6 hours ago
The UK First‑Tier Tax Tribunal clarified that caregivers supplied to nursing and residential care homes are not VAT‑exempt unless they are registered medical professionals or supervised as required. The tribunal found that the taxpayer's services did not meet the exemption criteria and no other exemptions applied. The decision was issued on 16 December 2025.
Bloomberg Tax · about 23 hours ago
On 17 December 2025 the UK First‑Tier Tax Tribunal ruled that companies trading in telephone calling cards are liable for VAT and penalties, rejecting their claim to recover input VAT on purchases from a Hong Kong supplier. The tribunal held that the companies acted as principals, not agents, and failed to hold valid VAT invoices.
Post Office · 1 day ago
The Post Office provides guidance for UK sellers on how the Import One Stop Shop (IOSS) scheme applies to sales into the EU. Items under €150 can be covered by IOSS, allowing buyers to pay duties and fees at purchase, while items over €150 or sold outside IOSS require duties to be paid by the recipient or via pre‑paid services. Gifts under €45 are exempt from duties and fees.
British Beauty Council · 2 days ago
Under new UK legislation, businesses will no longer pay VAT on goods donated to charity, effective 1 April 2026. The change removes the current requirement for VAT on free gifts to charities, while donated resale goods remain zero‑rated. The relief aims to reduce waste and administrative costs for businesses and charities alike.
GOV.UK · 2 days ago
This HMRC internal manual provides guidance on VAT assessments, error correction, amendments, and withdrawals. It outlines procedures for dealing with MTD customers, powers of assessment, and remission of tax. The manual serves as a reference for HMRC staff handling VAT assessment processes.
HMRC · 2 days ago
HMRC guidance clarifies that input tax must normally be claimed in the accounting period when the tax became chargeable, but allows late claims under Regulation 29 if circumstances such as missing evidence or internal cut‑off dates apply. HMRC will not permit late claims if the capping limit has passed, if there is evidence of careless error or repeated late claims, and partially exempt taxpayers must recover only to the extent the tax would have been deductible. Staff should seek advice from the VAT Deductions Team or Tax Administration Policy Team when potential manipulation or contrived delays are suspected.