Other cases that caught our eye: 10 June 2022

In Sofology Ltd and another v HMRC [2022] UKFTT 153 (TC) (29 April 2022) the FTT decided that online advertising costs could be recovered in full on the basis that these costs had a direct and immediate link to the sale of sofas and did not relate to exempt insurance commissions. The taxpayers which made taxable supplies (of sofas) and exempt supplies (of insurance intermediary services) sought to recover the input tax incurred when purchasing search engine services from Google as part of their advertising campaigns. HMRC had argued that the input tax was directly attributable to both supplies meaning the input tax was not recoverable to the extent that it was directly attributable to the exempt supplies. Whilst the promoted results for the sofas might lead to sales of associated insurance the fact that there was an economic link...