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 Appellant's sole trader plastering business; 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 paragraphs 1A and 2 of Schedule 1 to VATA, which would only have prospective effect.

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

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 7 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Darren Vaughan

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

VAT Appeal / First Tier Tribunal (tax Chamber) Substantive 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 could 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 Appellant's sole trader plastering business; 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 paragraphs 1A and 2 of Schedule 1 to VATA, which would only have prospective effect.

Court Disposition

Appeal allowed in part

Orders

  • From 1 December 2013, the floor screeding and plastering activities are separate businesses for VAT purposes.
  • Prior to 1 December 2013, both activities constituted a single business for VAT purposes.