It has recently come to light that Moorfields Eye Hospital NHS Foundation Trust (Moorfields), an NHS organisation which has traditionally sat outside of the English Divisional VAT Registration has opted to join.
VAT accounted for nearly a quarter of all UK tax revenues in 2015/2016; so it’s virtually guaranteed it will remain in place after Brexit (VAT in one form or another being in place for many non-EU countries: Switzerland, Norway, Israel & now even the United Arab Emirates).
A year on from the release of the interim Lease Car guidance, HMRC have sent out a letter in the last few days to clarify a few points about the application of the simplification measure available in relation to salary sacrifice arrangements for the NHS.
As a broad overview, the Brockenhurst College Case considered whether supplies of chargeable catering & entertainment could be considered to be ‘closely related’ to the supplies of education being made to students of the college.
The first case concerned overall eligibility for a DIY Reclaim. Whilst Mr & Mrs Treanor had been granted permission for a residential unit, it was limited to occupation and use with an adjoining workshop. Whilst the Tribunal sympathised with the Treanors, they found that HMRC were correct to reject the claim as being a ‘live-work’ unit and not passing the test of ‘being designed as a dwelling’.
The update today has announced very little in the way of VAT changes. They reinforced their attitude towards tax avoidance by confirming that a new penalty regime will be introduced for those involved. They also commented that they were specifically focusing on shutting down inappropriate use of the flat rate scheme.