Merlin Scientific LLP wins VAT appeal over business meeting costs

HMRC has lost an appeal over a claim concerning input tax on meetings costs, which the tax inspectors asserted were business entertainment expenses, when in fact the costs were incurred for legitimate business meetings

In the case, Merlin Scientific LLP [2015] TC 04441 UKFTT 0247 (TC), the First Tier Tribunal (FTT) allowed the limited liability partnership’s (LLP) appeals against a VAT assessment and a direction to amend a VAT return, as well as amendments to a self assessment return.

The tribunal ruled that the expenses were corporate meeting costs and the input tax incurred on those costs was allowable. Therefore the expenses could be deducted in the computation of profits for income tax purposes.

This decision relates to the treatment of corporate meeting costs and whether they were in fact the provision of business entertainment.

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