Barratt Goff & Tomlinson v HMRC

In Barratt Goff & Tomlinson v HMRC (TC00949 – 15 February) a partnership of solicitors did not account for VAT on fees charged by medical professionals for providing medical records and medico-legal reports for litigation purposes treating them as disbursements. HMRC issued assessments charging VAT on the basis that the fees were consideration for supplies of legal services. The partnership appealed. The tribunal allowed the appeal applying the principles laid down in De Danske Bilimportører v Skatteministeriet ECJ Case C-98/05 and specifically distinguishing the QB decision in Rowe & Maw v C & E Commrs QB [1975] STC 340.

Why it matters: HMRC took the view that the payments here were chargeable to VAT applying the 1975 QB decision in Rowe & Maw v C & E Commrs. However the Tribunal specifically distinguished that decision and allowed the partnership’s appeal...