DL Skinner (t/a DLS Packaging) v HMRC

VAT: Application for retrospective operation of flat-rate scheme

In DL Skinner (t/a DLS Packaging) v HMRC (TC00376 – 8 March) a trader (S) carried on a packaging business. He registered for VAT in 1990. In March 2009 he applied to join the flat-rate scheme and asked for this to be backdated to 2003. HMRC agreed that he could join the scheme with effect from 1 January 2009 but refused to allow him to backdate his entry into the scheme to 2003. The Tribunal dismissed S's appeal against this decision applying the principles laid down by the Ch D in HMRC v Burke [2009] EWHC 2587 (Ch).

Why it matters: There have been conflicting Tribunal decisions on this subject. HMRC was disappointed to lose the cases of Anderson (VTD 20255) and Burke (VTD 20881). It failed to appeal against the decision in Anderson but did...