Graham Elliott, VAT expert, casts his expert eye over the recent Why Pay More for Cars ruling, insurance intermediation in Risktop Consulting and residential service charges and VAT issues in Janine Ingram case
Comment: demonstrating that VAT has been paid in car case
Cases arising from the ‘Fleming’ situation, whereby uncapped claims were capable of being made for a short period which ended a few years ago, continue to use up court time and occasionally provide lessons of relevance to the modern era. One of these is the Upper Tribunal decision in Why Pay More For Cars Ltd (UKUT0468).
The detail of the claim is no longer important, but, stated briefly, it was that VAT had been overpaid by car dealers on manufacturer bonuses. The appellant made a claim but this was refused by HMRC on the basis that general market intelligence suggested it was unlikely that, in the period under dispute, any dealer actually paid VAT on the bonuses.
