Company reclaiming input tax without accounting for output tax
In Benridge Care Homes Ltd v HMRC (Upper Tribunal – 9 May) a company (B) which operated a residential care home from 1986 to 1992 registered for VAT in 2008 and submitted a return reclaiming input tax of £47 713 without declaring any output tax. HMRC rejected the claim and B appealed. The First-tier Tribunal dismissed the appeal and the Upper Tribunal upheld this decision finding that B had ‘understated the amount of output tax actually due’ and holding that the effect of VATA 1994 s 25 was that ‘no amount of VAT fell to be repaid to the appellants because the output VAT chargeable on the appellants’ supplies for the period exceeded the creditable input tax claimed in the period’.
Company reclaiming input tax without accounting for output tax
In Benridge Care Homes Ltd v HMRC (Upper Tribunal – 9 May) a company (B) which operated a residential care home from 1986 to 1992 registered for VAT in 2008 and submitted a return reclaiming input tax of £47 713 without declaring any output tax. HMRC rejected the claim and B appealed. The First-tier Tribunal dismissed the appeal and the Upper Tribunal upheld this decision finding that B had ‘understated the amount of output tax actually due’ and holding that the effect of VATA 1994 s 25 was that ‘no amount of VAT fell to be repaid to the appellants because the output VAT chargeable on the appellants’ supplies for the period exceeded the creditable input tax claimed in the period’.
