In Dynamic People Ltdv HMRC [2016] UKFTT 229 (5 April 2016) the FTT found that HMRC had been wrong to consider that a partial exemption method (PESM) automatically ceased to operate on the trader joining a group.
Dynamic People had agreed with HMRC a PESM based on floor space at a time when it was not a member of a group. When Dynamic People joined a group HMRC indicated that it was necessary to agree a new PESM. Dynamic People therefore proposed a new PESM which according to the FTT was substantially the same as the existing one. HMRC rejected it.
At the hearing the FTT asked HMRC to confirm that it had given a direction to terminate the use of the existing PESM. HMRC was unable to give such confirmation...
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In Dynamic People Ltdv HMRC [2016] UKFTT 229 (5 April 2016) the FTT found that HMRC had been wrong to consider that a partial exemption method (PESM) automatically ceased to operate on the trader joining a group.
Dynamic People had agreed with HMRC a PESM based on floor space at a time when it was not a member of a group. When Dynamic People joined a group HMRC indicated that it was necessary to agree a new PESM. Dynamic People therefore proposed a new PESM which according to the FTT was substantially the same as the existing one. HMRC rejected it.
At the hearing the FTT asked HMRC to confirm that it had given a direction to terminate the use of the existing PESM. HMRC was unable to give such confirmation...
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