HMRC Not Appealing VAT DecisionAugust 9, 2012
HM Revenue & Customs (HMRC) has decided not to appeal against a judgement for a businessman who recouped £259,000 of VAT paid on fees, after a battle that has rumbled on for two years.
In 2009, Jason Butler, a partner at Bloomsbury Wealth Management, applied to HMRC for repayment of VAT totalling almost £259,000, which he said he had accounted for in error over the previous four years.
The firm’s advice services had had VAT applied to them, but these should have been treated as exempt. However, HMRC rejected the claim in 2010 and so Bloomsbury appealed.
And in May this year a tax tribunal ruled in favour of Mr Butler, saying that the service he had offered on behalf of Bloomsbury was intermediation, which is exempt from VAT.
Tribunal judge Greg Sinfield said: “The evidence showed the focus of Bloomsbury’s services was the creation and maintenance of a portfolio of units for its clients which is an exempt supply of intermediary services.”
HMRC had until yesterday to appeal the decision but confirmed earlier in the week that it would not, with a spokesman saying: “Bloomsbury was merely acting as an IFA in the provision of advice leading to the intermediation of exempt financial products. As such, the VAT treatment as found by the tribunal is entirely consistent with that laid out in our current guidance.”
While Mr Butler said that he was delighted but not surprised: “I think it was the right decision from the Revenue because it was the right decision from the Tribunal. It just shows that the system does work for the taxpayer when the taxpayer is being fair and reasonable and standing up for their rights. I think it’s the right decision and I’m pleased to hear about it.”
As an accountant in Bradford, Mark Wilcock specialises in offering accounting and audit advice.This entry was posted in Mark Wilcock. Bookmark the permalink.