In D Doris (t/a Gardiners of Denny) v HMRC (and related appeals) (TC01016 – 16 March) an optician had submitted VAT returns on the basis that 40% of the consideration which he received was taxable and 60% was exempt. HMRC issued assessments on the basis that 62% of the consideration should have been treated as taxable.
The Tribunal reviewed the evidence in detail and allowed the optician’s appeal finding that ‘HMRC failed to apply best judgment to the assessments under appeal’.
Why it matters: This is a specialist area but the decision is a significant defeat for HMRC. HMRC’s attempt to treat more than 60% of the appellant’s turnover as taxable seems to mark a more aggressive approach than hitherto and to be out of line with previous Tribunal decisions relating to opticians.
See for example FP Whiffen (VTD 18951) (51% treated as taxable);...
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