Vaughan v Revenue & Customs (VAT - AVOIDANCE : Other) [2018] UKFTT 776 (TC) (31 December 2018)

Vaughan v Revenue & Customs (VAT - AVOIDANCE : Other) [2018] UKFTT 776 (TC) (31 December 2018)

From 1 December 2013, the floor screeding activities were carried on by a partnership separate from the plastering activities carried on by the Appellant as a sole trader. Prior to that date, both activities were a single business. HMRC cannot treat the activities as a single business after 1 December 2013 without a...

Source-derived case information.

Citation
[2018] UKFTT 776 (TC)
Parties
Appellant: Darren Vaughan; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
31 December 2018
Procedural Posture
VAT Registration Appeal / First Tier Tribunal Decision
Outcome
Appeal allowed in part
Legal Topics
VAT Registration, Business Disaggregation, Partnership Law
Tax Law VAT Registration Business Disaggregation Partnership Law

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Parties

Darren Vaughan

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Registration Appeal / First Tier Tribunal Decision

Legal Issues

  1. 1 Whether plastering and floor screeding activities constituted a single business or two separate businesses for VAT purposes
  2. 2 Whether HMRC can retrospectively register the plastering business for VAT

Ratio Decidendi

From 1 December 2013, the floor screeding activities were carried on by a partnership separate from the plastering activities carried on by the Appellant as a sole trader. Prior to that date, both activities were a single business. HMRC cannot treat the activities as a single business after 1 December 2013 without a direction under Schedule 1, paragraphs 1A and 2 of VATA, which would only have prospective effect.

Court Disposition

Appeal allowed in part

Orders

  • From 1 December 2013, plastering and floor screeding activities are treated as separate businesses for VAT purposes.
  • HMRC cannot retrospectively treat the activities as a single business after 1 December 2013 without a direction under Schedule 1, paragraphs 1A and 2 of VATA.