VAT update - December 2014

Details of recent VAT changes.

Revenue and Customs Brief 42 (2014): integration of claims in insolvencies

This brief aims to alert the insolvency profession to upcoming changes in how HMRC deals with the tax affairs of insolvent taxpayers.

It explains that HMRC will shortly be in a position to issue ‘integrated’ insolvency claims encompassing all HMRC debt, and details how HMRC will deal with insolvency claims handling work, including the forms and processes.

Revenue and Customs Brief 39 (2014): VAT liability catering and other services linked to education

This brief explains HMRC’s current position following the decision of the Court of Appeal to grant leave to appeal against the Upper Tribunal’s decision.

The upper tribunal rejected HMRC’s case and the case is expected to be heard by the Court of Appeal in February.

The case concerns the VAT liability of restaurant meals provided to the public and charges for concerts and other performances put on by students as part of their further education courses.

The first tier and upper tribunal both held that the supplies were closely related to the exempt supplies of education because they enabled the students to enjoy better education.

HMRC states in the brief that it 'will consider claims and make appropriate repayments based on the UT’s decision where the circumstances are exactly the same. (HMRC are not making repayments in other circumstances such as where the supplies in question are linked to fully grant funded education).'