The latest VAT rulings with implications for businesses include late VAT registration in Taylor Construction, overseas agents' supplies in Newcastle University case and business or not at issue in Gravel Road Records, writes Graham Elliott, director at City & Cambridge Consultancy
Case: late VAT registration in Taylor construction
Taylor Construction (TC05612) highlights a significant logistical issue concerning penalties and tax agents. In this case, the taxpayer was late registering. His VAT affairs were handled by an external tax agent. However, it is HMRC’s policy to send the penalty notifications to the taxpayer without copying these to the agent. The relevant letter states in bold that it has not been sent to the agent. The notification requires a response from the taxpayer; failure to do so is apt to increase the penalty.
In this case, the director of the taxpayer left everything to the agent and failed to pass the letter to him. As a result, he failed to respond in time and lost ‘credits’ against the penalty. When the agent discovered this, he appealed on the taxpayer’s behalf.
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