In an Upper Tribunal, Michael Firth, instructed by VATangles VAT Consultancy on behalf of the Trust, disputed HMRC’s claims that VAT was chargeable by Northumbria Healthcare NHS Foundation Trust on car parking provided at hospital sites from 2013 to 2016.

The VAT at stake totalled £267,443, but the tribunal was told that there were around 50 similar appeals by NHS bodies worth an estimated £70m.

The Trust appealed against the FTT decision, arguing that it should not be treated as a ‘taxable person’ as its services did not constitute an economic activity and were outside the scope of VAT.

The Trust operates 14 hospitals and provides pay-and-display car parking at up to £6 for 24 hours, which generates additional income to ‘better carry on its principal purpose’. However, free parking was available to certain hospital users, including cancer patients and those visiting the hospital for an extended period.

Ar