Yet again we see HMRC equating outside the scope income with an input tax restriction. There is a lot of confusion from HMRC about what constitutes a direct link (can you even have a direct link to something that is not a supply) and it is a bit surprising that HMRC, having fought Frank A Smart all the way to the SC, losing at every stage, has decided to re run the same argument again in this FTT, presumably expecting to get a different answer. Einstein said that is the definition of madness. (Source KPMG)
Source Bailii
Latest Posts in "United Kingdom"
- VAT Rules for Workwear, Uniforms, and Staff Clothing: What Businesses Need to Know
- Understanding E-Invoicing: Benefits, Challenges, and the Future for UK Businesses and Government
- How Overseas Businesses Can Reclaim UK VAT: Eligibility, Deadlines, and Key Conditions
- Beginner’s Guide to UK VAT: Registration, Rates, Exemptions, and Record-Keeping Explained
- UK Tribunal Overturns VAT Fraud Penalty, Clarifies Input VAT Deduction Rights for Taxpayer
