In Marsdens Caterers of Sheffield v HMRC [2016] UKUT 88 (22 February 2016) the FTT found that a taxpayer was required to pay VAT under the payment on account (POA) regime (VAT (Payments on Account) Order SI 1993/2001) even though the threshold had increased with the effect that the taxpayer’s turnover was below it.
Marsdens had been required by HMRC to pay VAT under the POA regime and HMRC contended that all three payments for the 09/11 quarter had been made late.
Marsdens argued that HMRC had been wrong to assert that the POA regime applied to it for the 9/11 quarter as its liability had not exceeded the relevant threshold in 03/11. That threshold had been increased by statutory instrument which had come into force on 1 June 2011. Marsdens’ VAT for the period of 03/11 had therefore fallen below the threshold so...
