Input tax on conversion of hairdressing salon into cafe
In Ms A Khoshaba (t/a Cinnamon Cafe) v HMRC (TC02864 – 26 September) a woman (K) obtained a lease of a hairdressing salon and arranged for it to be converted into a cafe. In her first VAT return she reclaimed input tax on the conversion. HMRC rejected the claim on the basis that it related to a supply of services which had taken place more than six months before K registered for VAT and was therefore not deductible. The First-tier Tribunal dismissed K’s appeal specifically distinguishing the earlier decision in Miller v C & E Commrs (VTD 18630) and holding that the invoice related to a single supply of services.
Input tax on conversion of hairdressing salon into cafe
In Ms A Khoshaba (t/a Cinnamon Cafe) v HMRC (TC02864 – 26 September) a woman (K) obtained a lease of a hairdressing salon and arranged for it to be converted into a cafe. In her first VAT return she reclaimed input tax on the conversion. HMRC rejected the claim on the basis that it related to a supply of services which had taken place more than six months before K registered for VAT and was therefore not deductible. The First-tier Tribunal dismissed K’s appeal specifically distinguishing the earlier decision in Miller v C & E Commrs (VTD 18630) and holding that the invoice related to a single supply of services.
