V@ update - March 2021

Welcome to the March 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.

News

• HMRC has updated its guidance on paying VAT payments which were deferred between 20 March and 30 June 2020, due to coronavirus. The guidance has been updated to add information about how to join the VAT deferral new payment scheme and a link to join the scheme has been added. Read more
• HMRC has published transitional guidance on the VAT treatment of transactions of specified supplies of finance and insurance services. The guidance follows the changes made to the Value Added Tax (Input Tax) (Specified Supplies) Order (SSO) 1999, which came into effect at 11pm on 31 December 2020. Affected businesses are those, including banks, investment managers, insurers and brokers, which supply (i) certain financial services from the UK to persons belonging in the EU; and (ii) services in connection with an export of goods to persons belonging the EU. Read more
• HMRC has published guidance on applying for a grant to help small and medium-sized businesses new to importing or exporting. The SME Brexit Support Fund, provides grants for training on (i) how to complete customs declarations; (ii) how to manage customs processes and use customs software and systems; and (iii) specific import and export related aspects including VAT, excise and rules of origin. The grants can also be used for professional advice so that businesses can meet their customs, excise, import VAT or safety and security declaration requirements. Read more

Case reports

Eynsham Cricket Club – Court of Appeal confirms that Community Amateur Sports Clubs are not charities

In Eynsham Cricket Club v HMRC [2021] EWCA Civ 225, Eynsham Cricket Club (ECC), a village cricket club registered as a community amateur sports club (CASC), had a new pavilion built to replace a former structure which was destroyed by fire. Initially, invoices were issued on the basis that the supplies were zero-rated. However, following discussions with HMRC, the builder sought to charge VAT. ECC paid the invoices in full (including the VAT) but challenged HMRC's treatment of the VAT element on the basis that the supplies should have been zero-rated. Read more

St John Sellers – FTT holds that insufficiency of funds was only a reasonable excuse in relation to invoice-based tax liabilities

In Robin St John Sellers v HMRC [2021] UKFTT 27 (TC), the FTT upheld penalties imposed by HMRC in respect of late VAT and income tax payments except when the taxpayer, a criminal barrister, was taxed on an invoice basis and encountered exceptional financial issues. Read more

Borough Council Of King's Lynn – FTT confirms that off-street car parking overpayments by local authority are subject to VAT

In King's Lynn and West Norfolk BC (No 2) v HMRC [2021] UKFTT 10 (TC), the FTT concluded that 'overpayments' at a public authority pay and display off-street car park represented further consideration for a supply of parking and were therefore subject to VAT. Read more

Westow Cricket Club – UT discharges penalty based on reasonable excuse

In Westow Cricket Club v HMRC [2021] UKUT 23, the UT allowed the appeal of Westow Cricket Club (WCC) against a decision of the FTT to dismiss its appeal against HMRC's decision to impose on it a penalty under section 62(1) and (2), VATA (penalty for issuing an incorrect certificate as to zero rating). Read more