New guidance on its approach to determining whether activities form part of a business for VAT purposes

HMRC has published new guidance on its approach to determining whether activities form part of a business for VAT purposes.

HMRC has published a policy paper (Revenue & Customs Brief 10 (2022)) which explains its approach to the question whether or not an activity is a business activity for VAT purposes following recent case law developments. In particular, HMRC has confirmed that it will now adopt the two-stage test from the recent Wakefield College case, including asking the question whether supplies are made for the purposes of obtaining income from them.

Source Simmons & Simmons