InGarland Hoff v HMRC[2015] UKFTT 141 (8 April 2015) the FTT confirmed a default surcharge.
Garland Hoff is a small tour operator and its liability to VAT is calculated under the Tour Operators Margin Scheme (TOMS). It set up a subsidiary Garland Hoff Travel to operate trader to trader under TOMS. The two companies were not grouped for VAT purposes. HMRC had identified a management charge between the two companies on which VAT was due. This meant that Garland Hoff would pay the VAT and that its subsidiary would repay it and reclaim the amount from HMRC.
Mr Garland had considered it prudent to wait to receive the repayment from HMRC before making the payment of VAT. On receipt of the repayment from HMRC on 6 May Garland Hoff had immediately instigated payment by BACS...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
InGarland Hoff v HMRC[2015] UKFTT 141 (8 April 2015) the FTT confirmed a default surcharge.
Garland Hoff is a small tour operator and its liability to VAT is calculated under the Tour Operators Margin Scheme (TOMS). It set up a subsidiary Garland Hoff Travel to operate trader to trader under TOMS. The two companies were not grouped for VAT purposes. HMRC had identified a management charge between the two companies on which VAT was due. This meant that Garland Hoff would pay the VAT and that its subsidiary would repay it and reclaim the amount from HMRC.
Mr Garland had considered it prudent to wait to receive the repayment from HMRC before making the payment of VAT. On receipt of the repayment from HMRC on 6 May Garland Hoff had immediately instigated payment by BACS...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
