In Virgin Media Ltd v HMRC [2020] UKUT 100 (TCC) (8 April 2020) the Upper Tribunal held that payment of a single advance sum for 12 months’ telephone line rental which was less than the total amounts paid on a monthly basis for an equivalent period did not amount to a ‘discount for prompt payment’.
In particular the UT decided that:
(a) the provision to a customer (a ‘saver customer’) of a fixed line telephone rental for a 12 month period for an advance payment of £120; and
(b) the provision to a customer (a ‘monthly customer’) of a fixed line telephone rental for for a monthly payment of £13.50
were not the subject of the same contractual arrangements with the result that the lower price of (a) compared to (b) over an equivalent period did not amount to a discount for prompt payment.
Prior to legislative changes effective from 1 May 2014 VATA 1994 Sch 6 para 4...
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In Virgin Media Ltd v HMRC [2020] UKUT 100 (TCC) (8 April 2020) the Upper Tribunal held that payment of a single advance sum for 12 months’ telephone line rental which was less than the total amounts paid on a monthly basis for an equivalent period did not amount to a ‘discount for prompt payment’.
In particular the UT decided that:
(a) the provision to a customer (a ‘saver customer’) of a fixed line telephone rental for a 12 month period for an advance payment of £120; and
(b) the provision to a customer (a ‘monthly customer’) of a fixed line telephone rental for for a monthly payment of £13.50
were not the subject of the same contractual arrangements with the result that the lower price of (a) compared to (b) over an equivalent period did not amount to a discount for prompt payment.
Prior to legislative changes effective from 1 May 2014 VATA 1994 Sch 6 para 4...
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