In Goodman Equine Ltd v HMRC (TC02243 – 14 September) a woman who competed in dressage events incorporated a company which registered for VAT and reclaimed input tax on the purchase of a horse. HMRC rejected the claim on the basis that the company was not carrying on any economic activity. The FTT dismissed the company’s appeal against this decision. Judge McKenna noted that the company’s accounts had not declared any turnover and observed that the company did not give ‘the impression of a serious undertaking but rather of an undertaking conducted principally to further the competitive career and enjoyment of the company’s director’. The company did not appear to be ‘conducted in accordance with sound and recognised business principles’.
In Goodman Equine Ltd v HMRC (TC02243 – 14 September) a woman who competed in dressage events incorporated a company which registered for VAT and reclaimed input tax on the purchase of a horse. HMRC rejected the claim on the basis that the company was not carrying on any economic activity. The FTT dismissed the company’s appeal against this decision. Judge McKenna noted that the company’s accounts had not declared any turnover and observed that the company did not give ‘the impression of a serious undertaking but rather of an undertaking conducted principally to further the competitive career and enjoyment of the company’s director’. The company did not appear to be ‘conducted in accordance with sound and recognised business principles’.
